Ethics in Dealing with Employees in Family Business
Depends on the nature and type of the business. If the business is a small scale or sole proprietorship form of business, it may not require the service of employee hence the use of family members. The values of employees are neglected because the nature and strength of the business may not be able to cater or shoulder the responsibilities as well as salary of the employees. It is ethical in the sense that you don't employ service that can not be paid for otherwise legal action would be taken against such employer that fails to pay his employees.
It could be unethical only when the family business has the power to recruit employees and fails to do so simply because they do not want any person to benefit from the business i.e. to gain a source of living through their business. Such business stand chances of stunted growth.