Gill Investigates McKinsey for Promotion of Discriminatory Hiring Practices in the Workplace that Cost U.S. Billions
WASHINGTON—Task Force on Defending Constitutional Rights and Exposing Institutional Abuses Chairman Brandon Gill (R-Texas) is investigating prominent consulting group McKinsey & Company for its heavy-handed promotion of discriminatory diversity, equity, and inclusion (DEI) practices in American companies. McKinsey published several pro-DEI reports that proactively influence American companies and fiduciaries to make hiring and investment decisions based on “diversity,” asserting that companies that hire more “diverse” candidates into management positions are more likely to see improved financial performance and productivity. In a letter to McKinsey Global Managing Partner Robert Sternfels, Task Force Chairman Gill requests McKinsey provide to the Task Force all documents and communications relating to the underlying datasets, processes and procedures, and academic review of the four DEI reports.
“McKinsey published four reports titled Why Diversity Matters (2015), Delivering Through Diversity (2018), Diversity Wins (2020),and Diversity Matters Even More (2023). These reports allege strong links between companies with increased levels of racial and gender ‘diversity,’ emphasizing that increased diversity in companies causes a greater likelihood of improved financial performance,” wrote Task Force Chairman Gill. “These McKinsey reports have been highly influential, being cited by publicly traded companies, asset managers, proxy advisory firms, and banking institutions, among others, as cause for embedding illegal racial and sex-based targets into hiring, promotion, executive compensation, and asset manager proxy voting policies.”
Researchers assessing McKinsey’s DEI reports have been unable to replicate the results, and suggest that McKinsey likely swapped the cause and effect in its DEI conclusions. The broad implementation of discriminatory DEI hiring and promotion practices has cost the U.S. economy billions of dollars in foregone revenue, including roughly $94 billion in just 2023 alone. McKinsey continues to stand by its findings, even though no such correlation between a company’s racial and gender diversity and its financial performance exists. While the Civil Rights Act of 1964 prohibits discrimination based upon race and sex, McKinsey’s DEI reports encourage companies to discriminate in that way, and are ultimately based upon unverified and questionable data. This letter is part of the Task Force’s larger investigation into harmful DEI practices and its commitment to rooting them out of American industries and institutions.
“In corporate stewardship, the California Public Employees Retirement System (CalPERS) Investment Office cited two of the McKinsey DEI reports in its explanation for voting against three board members of P.A.M. Transportation Services, Inc. who had failed to satisfy its board diversity demands. [This is one of] a few examples of the compelling influences of the McKinsey DEI reports and reflect the importance of establishing the reports’ integrity. While McKinsey has claimed the DEI studies only found a correlative link between DEI and financial outperformance, McKinsey spokeswoman and the author of four of the DEI reports Vivian Hunt publicly asserted that ‘the leading companies in our datasets are pursuing diversity because it’s a business imperative and driving real business results.’ Further, McKinsey has not publicly released its underlying datasets used to produce its DEI reports,” concluded Task Force Chairman Gill.
Read the letter here.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
