FIRST ON FOX: A multibillion-dollar global corporation that House Republicans accused of peddling misleading claims about diversity in the workplace is sticking by its findings. Brandon Gill, R-Texas, who leads a House Oversight Committee task force on "exposing institutional abuses," targeted consulting firm McKinsey & Company over a series of reports it released that argued diversity in the workplace led to better business and financial outcomes. "These McKinsey reports have been highly influential, being cited by publicly traded companies, asset managers, proxy advisory firms, and banking institutions, among others, as cause for embedding illegal racial and sex-based targets into hiring, promotion, executive compensation, and asset manager proxy voting policies," Gill wrote in a letter sent Monday and first reported by Fox News Digital.
A spokesperson for the company told Fox News Digital on Tuesday that it agreed with Gill "that race and gender should not guarantee outcomes," but added, "We stand by our research on the business and economic impact of a diverse workforce." SENATE REPUBLICAN PUSHES MERIT-BASED MILITARY PROMOTIONS, TARGETS BIDEN-ERA DEI POLICIES "We also recognize that diversity in the workplace encompasses a broad range of backgrounds, experiences and perspectives. We have and will continue to follow the law in the U.S. and in the other markets in which we operate," the spokesperson said. Gill wrote in his letter that McKinsey's reports were "highly influential in American corporations" and provided fuel for left-wing groups pushing race and gender-based diversity goals.
"With the support of the previous administration, progressive activists cited McKinsey’s reports to push companies, governments, and stock exchanges to implement rules which forced or incentivized illegal corporate racial or gender-based hiring and disclosure policies," he wrote. NEW YORK TIMES SUED BY FEDERAL GOVERNMENT OVER ALLEGED 'DEI-RELATED' EMPLOYMENT DISCRIMINATION Gill also questioned whether the findings of the reports were legitimate. "Although in 2024 McKinsey stated that it 'stands by its findings,' other researchers have found zero statistical correlation between a company’s gender and racial diversity and its financial performance," the letter said.
"Racial discrimination in the employment context, including under the guise of DEI, has been pervasive despite being plainly illegal for over half a century." Gill cited a 2026 White House Economic Report that said DEI initiatives cost the U.S. economy roughly $94 billion in 2023. He also pointed out that four reports published by McKinsey between 2015 and 2023 argued that companies with increased racial and gender diversity financially outperformed companies without it. "Researchers assessing the McKinsey DEI studies cannot recreate the results and also find that McKinsey likely swapped the cause and effect of its DEI conclusions," Gill wrote.
"The Executive Office of the President has identified $94 billion in annual economic costs to the U.S. economy due to promotion of otherwise illegal race and gender-based hiring practices, perhaps in part motivated by the findings of McKinsey’s DEI reports that are partially inaccurate or wholly incorrect." McKinsey's corporate website states, "The business case for gender equality, diversity, and inclusion is strong and growing stronger." The website estimated that the national GDP would go up by $12 trillion if the workforce gender gap is narrowed by 2025, but no update appears to be provided. Another statistic cites $2 billion in additional revenue "if financial inclusion efforts broaden services for black Americans." Fox News Digital reached out to Gill for comment on McKinsey's response to his probe. Elizabeth Elkind is a politics reporter for Fox News Digital leading coverage of the House of Representatives.
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