NEW YORK, Feb. 4, 2021 /PRNewswire/ -- McKinsey &
Company today reached settlements with 49 State Attorneys General,
five territories and the District of
Columbia, related to the firm's past advisory work for
opioid manufacturers. McKinsey will pay nearly $600 million, which the states will use to
address the impact of the opioid epidemic in their communities, and
McKinsey has reaffirmed the commitment it made two years ago not to
advise clients on any opioid-related business anywhere in the
world.
As part of the agreement, the Attorneys General recognized
McKinsey's "good faith and responsible corporate citizenship in
reaching this resolution." McKinsey believes its past work was
lawful and has denied allegations to the contrary. The settlement
agreements themselves contain no admission of wrongdoing or
liability.
Kevin Sneader, Global Managing
Partner of McKinsey, said, "We chose to resolve this matter in
order to provide fast, meaningful support to communities across the
United States. We deeply regret that we did not adequately
acknowledge the tragic consequences of the epidemic unfolding in
our communities. With this agreement, we hope to be part of the
solution to the opioid crisis in the U.S."
Over the last two years, McKinsey has significantly improved its
risk and governance processes. These upgrades include:
- Adopting a best-in-class client service policy to guide what
clients the firm serves and on what topics. See more:
https://www.mckinsey.com/about-us/social-responsibility/client-selection
- Adopting and enforcing a code of conduct which leaves no room
for doubt as to the high standards required of every colleague. See
more:
https://www.mckinsey.com/about-us/social-responsibility/code-of-conduct
- Strengthening and scaling up the firm's control
functions and hiring a new General Counsel with government service
experience and a deep background in ethics and
governance.
- Enhancing the firm's professional standards training and
introducing an anonymous concerns hotline to embed and reinforce
the firm's high expectations for all colleagues.
McKinsey terminated the employment of two partners, who had
communicated about document deletion, for violating the firm's
professional standards.
"As I have said previously, we are determined to take the steps
necessary to strengthen our firm's risk management policies and
culture," said Mr. Sneader. "We will build on the steps we have
already taken to learn from past mistakes, and ensure we
consistently meet the high standards our firm has always aspired
to."
As noted above, and consistent with its policy decision in 2019
to stop any and all opioid-related work, McKinsey has further
committed to refraining from accepting any future client
engagements relating to the discovery, development, manufacture,
marketing, promotion, advertising, recall, withdrawal, monitoring,
sale, prescribing, use or abuse of any opioid product. The
firm also has agreed to participate in the public disclosure of
documents relating to McKinsey's past work for opioid
manufacturers.
More information about today's announcement can be found at:
www.McKinseyOpioidFacts.com
Media Contacts
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SOURCE McKinsey & Company