Supplement | HBS Case Collection | July 2014 (Revised October 2014)

McKinsey & Co. - Protecting its Reputation (B)

by Jay Lorsch and Emily McTague

Abstract

On Tuesday March 15, 2011, all 1,200 global Partners of McKinsey & Co. gathered at the Gaylord National Hotel & Convention Center near Washington, DC for their annual Partners' conference. The atmosphere was tense as Partners, in addition to their normal agenda, discussed the Galleon Group insider-trading trial and the recent allegations against the Firm's former Managing Director, Rajat Gupta. Three months earlier Senior Partner, Anil Kumar, pled guilty to providing confidential information about McKinsey clients he served to Galleon Group founder Raj Rajaratnam. The McKinsey Partners were shocked and dismayed by the actions of Kumar, as well as the recent allegations against Gupta and were closely monitoring the situation. Could a former Managing Director of their Firm have conspired to enable insider trading? And if so, what did that mean for the future of the Firm?

Keywords: board; McKinsey; reputation; corporate governance; risk management; CONSULTING firms; risk; Risk assessment; partnerships; insider trading; confidentiality; personal investing; Reputation; Corporate Accountability; Corporate Governance; Management Practices and Processes; Risk Management; Construction Industry; United States; California;

Citation:

Lorsch, Jay, and Emily McTague. "McKinsey & Co. - Protecting its Reputation (B)." Harvard Business School Supplement 415-022, July 2014. (Revised October 2014.)