Many companies have nepotism policies, that is favoritism shown to relatives, as in business, this could mean working together, or even getting contract work. if your family member works there, you won't get a job, just to avoid any appearance of wrong doing.
Some might also work under the philosophy, that the apple doesn't fall far from the tree, that if your brother worked there, and he was a major slacker and screw up, chances are - -you are too. Other side of the coin there, if your brother is a good hard worker, odds are good you might be too.
Just answer the question honestly, lying on an application is grounds for termination, don't read into why they are asking the question.
Usually when they refer to family members, it's immediate family, your mother's uncle's son's wife doesn't really count.
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Free your heart from hatred. Free your mind from worries. Live simply. Give more. Expect less.
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