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The controversy behind Biola’s new consulting firm, explained

McKinsey & Company has recently faced national media spotlight for consulting advice given to opioid manufacturers, authoritarian governments and ICE.
The controversy behind Biola’s new consulting firm, explained

Biola recently announced a partnership with McKinsey & Company, a consultancy that’s globally recognized among the top three management consulting firms. As the university prepares for an upcoming demographic shift in graduating high schoolers, McKinsey will guide the university to set goals for the next 10 years.

However, McKinsey has recently faced extensive media attention for its alleged unethical business practices. Both McKinsey and Biola dismiss these claims as misrepresentations of McKinsey’s work.

BIOLA OF THE FUTURE

In a press release, the school said it foresees a significant decline in the upcoming decade of recruitable high school graduates and a rise in religious “nones”—those without religious affiliation. These challenges led the President’s Cabinet and Board of Trustees to unanimously select McKinsey to provide outside counsel regarding two significant goals: “optimizing the Biola of today and envisioning the Biola of tomorrow.” The project is owned and fully funded by the Board of Trustees, but will be carried out by the President’s Cabinet. 

“I am excited about discerning what it will take for Biola to be a thriving university two decades from now, open to creative, efficient, effective and sustainable ways of keeping us educationally excellent, missionally faithful and financially strong,” President Barry Corey said in a press release.

The university said McKinsey began its work on Dec. 2 and is assessing Biola’s potential as the school envisions the Biola of 2030, analyzing studies and seeking feedback from the Board, senior leadership, faculty, staff and students. The Board seeks to review the consulting firm’s first deliverables in January 2020, with final review and approval in May. The plan will then be shared with the community in Summer 2020. 

OPIOIDS, ICE & CHINA

After Democratic presidential candidate Pete Buttigieg’s time as a management consultant for McKinsey brought the consulting firm into the national spotlight, the company has faced media scrutiny for consulting advice given to opioid manufacturers, authoritarian governments and Immigrations and Customs Enforcement.

Earlier this year, McKinsey was entangled in lawsuits that accused them of advising pharmaceutical companies to increase opioid sales, which exacerbated the opioid epidemic. According to the New York Times, in Oklahoma’s case against Janssen—Johnson & Johnson’s pharmaceutical subsidiary—the state brought up McKinsey’s PowerPoint presentation to Janssen in 2002. In the presentation, McKinsey asked, “Are we properly targeting and influencing prescription behavior in pain clinics?”

“McKinsey recommended ‘targeting and influencing’ doctors who specifically treat back pain in the elderly and those in long-term care,” the Times reported. “The consultants also advised the company to move physicians who were ‘stuck’ in prescribing less potent opioids into prescribing stronger formulations.”

In Massachusetts’ case against Purdue Pharma, documents from 2013 showed that McKinsey recommended that Purdue Pharma “turbocharge” the sales of OxyContin, which the FDA categorizes as a strong medication that has a high risk of abuse. 

Now, McKinsey says they no longer work with companies that produce opioids and that their work was intended to support the legal use of opioids. 

MCKINSEY’S ICE AGE

After interviewing those who had worked for both ICE and McKinsey to enforce the Obama and Trump administrations’ immigration policies and reviewing 1,500 of the agency’s documents, ProPublica reported that McKinsey had advised ICE to cut spending on food for migrants and medical care and supervision for detainees. The New York Times found that McKinsey did more than $20 million in consulting work for the agency. 

However, McKinsey stated that the ProPublica article “fundamentally misrepresents McKinsey’s work.”

“As a firm, we are committed to supporting the United States’ legacy of welcoming immigrants,” they said in a statement. “We believe that our firm, the United States and the global economy are strengthened by the mobility of diverse talent.” 

‘WE DO NOT SUPPORT OR ENGAGE IN POLITICAL ACTIVITIES’

According to the New York Times, McKinsey advised several of China’s state-owned companies, even though the nation has been urged by a United Nations committee to end mass detention of Uighurs, one of the country’s Muslim minority groups. The same report also cited examples of how McKinsey’s work has supported controversial authoritarian governments like those in Saudi Arabia, Russia, Ukraine and Turkey.

“Like many other major corporations including our competitors, we seek to navigate a changing geopolitical environment,” McKinsey said in a statement published by the New York Times, “but we do not support or engage in political activities.”

BIOLA PRAYERFULLY CONSIDERS

Biola is aware of the allegations against McKinsey, but the university underscored its confidence in McKinsey’s ability to uphold Biola’s religious tenets and mission. 

“We have discussed these allegations with McKinsey and, having heard their account of what happened, are assured that they remain the best fit to help the university successfully complete this important work,” the university said in a statement. “If at any point we have questions or concerns about their work, we have contractual options to end the agreement.”

The university described the initiative as “Biola-led” and says many of those on the team McKinsey has assigned to work with Biola share the university’s faith values. 

Biola’s leadership will prayerfully consider McKinsey’s recommendations in light of Biola’s culture, mission and ethos to determine which recommendations will be implemented,” the school said. 

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Micah Kim
Micah Kim, Managing Editor
Micah Kim is a senior journalism major who loves Radiohead, produces music, and admires people that can do a perfect backflip. Born in Pennsylvania, having South Korean blood in my pulsing veins and hacking my way through family missions in China, life had been full of complex colors that I could not name. Finding ways to express my way out of the constant stress I was in was always full of music until I found writing as my new set of crayons. Fortunately, I had one of the most amazing opportunities to explore my writing at The Chimes for about two years going from News Staff Writer to News Editor. Now as Managing Editor, I get to be involved with a more wide variety of journalistic skill sets like photography and design. I hope as an international multimedia journalist, I’ll be able to lead and guide our newspaper to become more diversely cultured and opinionated. Other than writing, I constantly put effort into tasting distinct music. Yet, my all time favorite band is and will be Radiohead. If you guys don’t enjoy Radiohead, too bad. You’re missing out.
Brittany Ung, Web Editor
Brittany Ung is a senior journalism major who loves fine point pens and could easily beat you in a tangerine eating contest. [email protected] Hi! I'm a journalism major from the Bay Area, home of Google, Tom Hanks and probably the most (or at least the best) boba shops per capita in the nation. I grew up doing competitive speech and debate — I competed in my first tournament when I was just 12 years old, advocating for the privatization of the United States Postal Service. Diving into the study of public policy taught me that I love learning about people and how we react to the things we’re confronted with. Right now, I'm picking up as much as I can about how we blueprint the world we live in, through industrial design and city planning. When my brain is too full to learn anything else, I'll play card games, practice cooking or re-read my favorite children's books.  I’m following in the steps of my mom (and homeschool teacher), herself a former news director and radio broadcaster. We’re almost opposites when it comes to personality, but we share a love for synonyms, Century Gothic and learning new things.  I was previously the Chimes’ news editor and editor-in-chief, but I’m back as web editor to challenge myself to learn about multimedia, web design and audience engagement by working on our website and social media profiles.
Pierce Singgih
Pierce Singgih, Editor-in-Chief (Fall 2019)
Pierce Singgih is a senior journalism major who keeps postponing graduation. When he’s not writing or editing, he can be found watching a Noah Baumbach film or drinking coffee. [email protected] I transferred to Biola as a biology major in 2017. You read that right. I wanted to be a doctor. After a semester here, and a few semesters of biology at community college, I realized I had zero desire to pursue a career in medicine. With no direction and little experience writing, I took a leap of faith into journalism. Now, after two years in the program, a few internships and my time with the Chimes, I’ve fallen in love with storytelling.  At its core, journalism is the voice of the community. Journalists provide a voice to the voiceless, standing up for those can’t stand up for themselves. I love representing a community and its people, bringing their voice to life in order to make real change.  Last summer, I interned for the Los Angeles Daily News where I did just that. I submerged myself in the San Fernando Valley –– a Los Angeles community –– covering breaking news, crime, elections and homelessness, among other issues. I also contribute to Film School Rejects, an online entertainment publication where I’ve covered the Los Angeles Film Festival and have certified film reviews on Rotten Tomatoes.  Now, I’m excited to follow in the footsteps of Editors-in-Chief before me and lead the Chimes into a new era of journalistic excellence.
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