Posted on May 22, 2022
McKinsey’s consulting work with Russian weapons manufacturer draws scrutiny in Washington
863
8
2
6
6
0
Russia has fired more than 2,000 missiles on Ukraine since invading in February. The engines for many of these missiles were manufactured by a massive state-owned enterprise called Rostec, and executives for that company hired the global consulting giant McKinsey & Co. in recent years for advice.
At the same time McKinsey was advising the Russian defense conglomerate, though not on any work directly involving weapons, the firm was carrying out sensitive national security contracts for the Defense Department and the U.S. intelligence community, according to an NBC News investigation.
McKinsey has come under scrutiny in Congress for its work with state-owned companies in China, with lawmakers questioning if the company should be awarded national security-related contracts given its extensive presence in China. McKinsey also faces accusations of ignoring possible conflicts of interest when it advised both opioid manufacturers and officials regulating opioids at the U.S. Food and Drug Administration.
At the same time McKinsey was advising the Russian defense conglomerate, though not on any work directly involving weapons, the firm was carrying out sensitive national security contracts for the Defense Department and the U.S. intelligence community, according to an NBC News investigation.
McKinsey has come under scrutiny in Congress for its work with state-owned companies in China, with lawmakers questioning if the company should be awarded national security-related contracts given its extensive presence in China. McKinsey also faces accusations of ignoring possible conflicts of interest when it advised both opioid manufacturers and officials regulating opioids at the U.S. Food and Drug Administration.
McKinsey’s consulting work with Russian weapons manufacturer draws scrutiny in Washington
Posted from nbcnews.com
Weapons
Russia
Ukraine
Posted 2 y ago
Responses: 2
1
1
0
1
1
0
PO1 William "Chip" Nagel
..."As a rule, McKinsey prefers not to disclose who its clients are or the nature of its consultant work. When its advice proves successful, the client claims the credit, and when things go badly, McKinsey suffers no blame, McDonald said.
McKinsey’s approach is not unique among management consultancies, and conflicts of interest are rife in an industry that is shrouded in secrecy and virtually unregulated in the United States and other countries, experts say.
Consultant firms often argue the market serves as a safeguard against abuses, promoting best practices and weeding out unethical actors. But Andrew Sturdy, professor of management at the University of Bristol in Britain, says the track record of the management consultancy industry suggests otherwise.
“If you take at least those situations where there’s extreme conflicts of interests, and large amounts of money at stake, there are undue pressures on people to bend the rules,” Sturdy said. “The lack of regulation, lack of transparency and the reward structures … put those firewalls and professionalism under pressure.”...
..."As a rule, McKinsey prefers not to disclose who its clients are or the nature of its consultant work. When its advice proves successful, the client claims the credit, and when things go badly, McKinsey suffers no blame, McDonald said.
McKinsey’s approach is not unique among management consultancies, and conflicts of interest are rife in an industry that is shrouded in secrecy and virtually unregulated in the United States and other countries, experts say.
Consultant firms often argue the market serves as a safeguard against abuses, promoting best practices and weeding out unethical actors. But Andrew Sturdy, professor of management at the University of Bristol in Britain, says the track record of the management consultancy industry suggests otherwise.
“If you take at least those situations where there’s extreme conflicts of interests, and large amounts of money at stake, there are undue pressures on people to bend the rules,” Sturdy said. “The lack of regulation, lack of transparency and the reward structures … put those firewalls and professionalism under pressure.”...
(1)
(0)
Read This Next
Continue with Facebook 
Continue with Google