Nepotism and favouritism in the steel industry: a case study analysis

The term ‘nepotism’, i.e. favouritism granted to relatives, is usually associated with corruption in the public sector and the abuse of public resources. Moreover, it is commonly accompanied by the public image of post-Soviet and/or developing countries. One may, however, observe the manifestations of nepotism in different sectors of the economy. Therefore, the aim of the paper is to analyse the main principles of transparent management of companies operating in the steel sector and deconstruct the myths of nepotism and favouritism. Two basic research methods were used to analyse these phenomena: an analysis of widely accessible information pertaining to the steel companies devoted to anti- nepotism practices (the first stage), and interviews with the managers of steel companies operating in Poland (the second stage). The data collected during the first stage allowed us to analyse the problems associated with nepotism when deconstructing established myths. In turn, interviews with the managers allowed us to compare the data achieved in the first stage to the real perception of this phenomenon and thus to determine the prevalence of these pathologies in the sector analysed. Our research has confirmed that nepotism and favouritism are observed in the sector analysed. However, it is necessary to emphasise that the scale and range of this phenomenon vary, depending on the membership of three groups, i.e. global corporations, companies listed on Warsaw Stock Exchange, and small companies. This implies the need for further research in these sectors.