3 Reasons People Think McKinsey Is Shady

McKinsey & Company, a highly influential consulting firm, has agreed to pay $650 million to settle a Department of Justice investigation into the company’s role in the opioid crisis — but that’s just the tip of the iceberg when it comes to McKinsey controversies. (NYT)

Opioids: McKinsey is accused of advising opioid manufacturers, including Purdue Pharma, on strategies to boost sales of addictive painkillers despite knowing the drugs were harmful and highly addictive.

• In a statement last week, the company said it was “deeply sorry,” and that it “should have appreciated the harm opioids were causing in our society” and “not have undertaken sales and marketing work for Purdue Pharma.”

DEI: A 2015 McKinsey study, which found companies with diverse leadership teams were more likely to produce profits, was debunked earlier this year.

• McKinsey’s research was widely used to promote the supposed financial benefits of diversity, equity, and inclusion programs, but academics have since called the study’s methodology and failure to replicate into question.

National security: Republican lawmakers have accused McKinsey of helping China develop its military and economy through consulting services while failing to disclose these ties when securing $480 million in U.S. defense contracts.

Looking ahead: While McKinsey did some contract work for the first Trump administration, some Republicans are urging the president-elect to keep the company out of government this time around.