A report out last month shows that studies from the global consulting firm McKinsey & Company showing a correlation between Diversity, Equity, and Inclusion (DEI) programs and significant profits were based on junk research.
A 30-page paper published in Econ Journal Watch found that studies conducted by the consulting giant in 2015, 2018, 2020, and 2023 could not be verified to find significant results supporting conclusions that favor corporate DEI regimes.
“Our results indicated that despite the imprimatur often given to McKinsey’s 2015, 2018, 2020, and 2023 studies,” researchers concluded, “McKinsey’s studies neither conceptually (in terms of the correct definition of causality) nor empirically (in terms of their set of large US public firms) support the argument that large US public firms can expect on average to deliver improved financial performance if they increase the racial/ethnic diversity of their executives.”
In other words, McKinsey’s studies touting diversity are not reliable.
Over the past few years, @McKinsey has released at least 4 studies claiming a positive relationship between DEI and firm performance.
A new paper published today in @EconJWatch finds these results can’t be replicated.
”Our inability to [replicate] their results suggests that… pic.twitter.com/W2qKHasLRy
— Chris Brunet (@realChrisBrunet) April 1, 2024
According to the pair of researchers who reviewed McKinsey’s work, “caution is warranted” when considering the recommendations from the firm to support DEI initiatives because results could not be replicated.
“The structure of McKinsey’s tests,” they added, point in “the default direction of causality,” showing “better firm financial performance causes
