This Case is about CORPORATE GOVERNANCE, ETHICS, JOINT VENTURES, PUBLIC RELATIONS, RISK MANAGEMENT
PUBLICATION DATE: July 16, 2014 PRODUCT #: 415021-PDF-ENG
On March 15, 2011, Tuesday all 1,200 worldwide Partners of McKinsey & Co. gathered at the Gaylord National Hotel and Convention Center in the vicinity of Washington, DC for their annual Partners’ meeting.
There was a feeling of anxiety as Partners, as well as their regular schedule, discussed the recent allegations as well as the Galleon Group insider trading trial from the former Managing Director, Rajat Gupta of the Firm. Three months earlier Senior Partner, Anil Kumar, pleaded guilty to supplying confidential information about McKinsey customers to Galleon Group creator Raj Rajaratnam. The McKinsey Partners were carefully tracking the problem and were stunned and dismayed by the activities of Kumar, in addition to the recent allegations against Gupta. Could a former Managing Director of the Firm have conspired to enable insider trading? And in that case, what did that mean for the Firm’s future?