A number of major firms have cut ties with the CBI, the UK’s largest business lobby group, following allegations of rape and stalking at the organisation. John Lewis, BMW, Virgin Media O2, Aviva, Zurich, Phoenix Group, Natwest, Mastercard, Kingfisher, ITV, Lloyds of London, Schroders, EY, the Association of British Insurers, Energy UK, GSK, AstraZeneca, Heathrow, Tesco, Sainsbury’s, Asda, Marks & Spencer, Santander, National Grid, Octopus Energy, Scottish Power, Diageo, Rolls Royce, Unilever, BT, British Land, PwC and Manpower Group are among those who have either cancelled or suspended their membership. Shell and BP have also paused their membership.
The CBI has been in crisis since allegations of a rape at a CBI summer party in 2019 and other sexual misconduct at the organisation emerged earlier this month. Three employees have been suspended pending the outcome of an investigation by law firm Fox Williams, while the group’s director-general was dismissed over separate complaints. Brian McBride, president of the CBI, said the group had not been previously aware of the most serious allegations and it was working closely with “the police to help ensure any perpetrators are brought to justice.”
The City of London Police is investigating an alleged rape at a CBI summer party in 2019 and a second incident reported by The Guardian. Detective Chief Superintendent Richard Waight from the City of London Police said that no arrests had been made and its investigations were continuing.
The CBI has appointed Rain Newton-Smith – its former chief economist – as its new director-general. Ms Newton-Smith had been at the CBI for nearly nine years before leaving last month to join Barclays. Mr McBride said: “We are rightly undertaking an urgent root and branch review of our culture to right the wrongs where we can and to reform our workplace for everyone.” However, some have questioned whether someone who has worked at the CBI is the right person to lead an overhaul of the organisation and its culture.
The crisis at the CBI has seen a number of major firms cut ties with the business lobby group. John Lewis said it made the decision to quit membership due to “the further very serious and ongoing allegations”. Virgin Media O2 said the “disturbing allegations and the way the situation has been handled is not representative of business in Britain.” Other firms that have quit include BMW, Aviva, Zurich and Phoenix Group, Natwest, Mastercard; B&Q owner Kingfisher; media firm ITV; insurance marketplace Lloyds of London; investment firm Schroders; and auditor EY. The Association of British Insurers has also left, as has Energy UK, which represents energy suppliers.
Companies that have suspended membership include GSK and AstraZeneca; airports operator Heathrow; retailers Tesco, Sainsbury’s, Asda, and Marks & Spencer; banking group Santander; National Grid, Octopus Energy and Scottish Power; drinks giant Diageo; Rolls Royce; Unilever; BT; property company British Land; accountancy giant PwC; and Manpower Group. Shell and BP are understood to have also paused membership of CBI. The government had already announced that it was pausing its engagement with the business group.
The Guardian also reported that a woman at the CBI’s London office had been stalked by a male colleague in 2018. She complained to the CBI and a finding of harassment was upheld. However, the newspaper reports that the man continued to work at the organisation and eventually left for unrelated reasons. In response, the CBI said: “We recognise the substance of the harassment report outlined as relating to an allegation made and investigated in January 2018.” The finding of harassment was upheld and a sanction was imposed.
The CBI is trying to move at pace. An investigation by law firm Fox Williams into numerous other alleged offences has been delivered to the group and it will communicate its findings and resulting actions early next week. The return of former CBI chief economist Rain Newton-Smith from Barclays has been fast-tracked for her to assume the vacated director-general’s office within days. But the cracks are already appearing and many member firms have told the BBC it is not a given that they can re-engage with a body with criminal investigations pending that could take many months. Little wonder the atmosphere at the CBI’s head office is described as miserable.
The crisis at the UK’s largest business lobby group has deepened with a number of major firms cutting ties following allegations of rape and stalking at the organisation. John Lewis, BMW, Virgin Media O2, Aviva, Zurich, Phoenix Group, Natwest, Mastercard, Kingfisher, ITV, Lloyds of London, Schroders, EY, Association of British Insurers, Energy UK, GSK, AstraZeneca, Heathrow, Tesco, Sainsbury’s, Asda, Marks & Spencer, Santander, National Grid, Octopus Energy, Scottish Power, Diageo, Rolls Royce, Unilever, BT, British Land, PwC and Manpower Group are among those who have either cancelled or suspended their membership. Shell and BP have also paused their membership.
The CBI has been in crisis since allegations of a rape at a CBI summer party in 2019 and other sexual misconduct at the organisation emerged earlier this month. Three employees have been suspended pending an investigation by law firm Fox Williams while former director-general Tony Danker was dismissed over separate complaints. Brian McBride, president of the CBI said that Mr Danker had been sacked on strong legal grounds. The CBI has appointed Rain Newton-Smith – its former chief economist – as its new director-general in an attempt to move quickly in addressing the crisis.
The City of London Police is investigating an alleged rape at a CBI summer party in 2019 and a second incident reported by The Guardian. Detective Chief Superintendent Richard Waight from the City of London Police said that no arrests had been made and its investigations were continuing. The Guardian also reported that a woman at the CBI’s London office had been stalked by a male colleague in 2018 with a finding of harassment upheld by the organisation.
The CBI is now undertaking an urgent root and branch review of its culture to right any wrongs and reform its workplace for everyone. However some have questioned whether someone who has worked at the CBI is the right person to lead an overhaul of the organisation and its culture. The British Insurance Brokers’ Association has withdrawn its membership “in light of recent reports” while many member firms have told the BBC it is not a given that they can re-engage with a body with criminal investigations pending that could take many months.