Several firms have left the CBI in the wake of allegations of rape and sexual assault, prompting the CBI to suspend critical operations until June.
As a result of new allegations of misbehaviour at the organisation, dozens of companies have announced they are leaving or suspending their membership.
Friday in a Guardian article, a second woman claimed she was assaulted by CBI employees.
The CBI stated that it “shares the astonishment and disgust” over the alleged events.
The lobbying group’s board stated that it wished to consult “colleagues, members, experts, and stakeholders” regarding the CBI’s future function and purpose.
The board said in a statement, “As a result, we have made the difficult but necessary decision to suspend all policy and membership activity until an extraordinary general meeting in June.”
At that meeting, the board will present proposals “for a refocused CBI,” according to the statement, adding that “this work and the cultural reform will be the sole and imperative focus of the organisation in the coming weeks.”
Despite membership operations being suspended until June, firms will still have the option to leave, according to the BBC.
Before the Guardian reported the second incident in 2019, the City of London Police was investigating an alleged rape at a CBI summer party.
Detective Chief Superintendent Richard Waight of the City of London Police stated that no arrests had been made and that the investigation was ongoing. He urged anyone with information to contact him.
Companies abandoning
On Friday, John Lewis was one of the prominent companies to leave the lobbying organisation that claims to represent 190,000 businesses.
John Lewis stated that its decision to leave the CBI was prompted by “further very serious and ongoing allegations.”
BMW, Virgin Media O2, Vodafone, insurers Aviva, Zurich and Phoenix Group, banking firm Natwest, credit card company Mastercard, B&Q owner Kingfisher, media company ITV, insurance marketplace Lloyds of London, investment firm Schroders, and auditor EY are among the other firms that have left.
Pharmaceutical giants 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, accounting giant PwC, Manpower Group, British Beer and Pub Association, and Shell and BP have all suspended membership.
The government had previously announced that it would suspend its engagement with the business organisation.
The British Insurance Brokers Association announced last week that it was withdrawing its membership “in light of recent reports.”
Since allegations of a rape at one of its summer parties in 2019 and other sexual misconduct at the organisation surfaced earlier this month, the CBI, which employs more than 300 people, has been in crisis.
Three employees have been placed on administrative leave pending the outcome of an investigation conducted by the law firm Fox Williams.
The group’s executive director was fired due to separate complaints.
For nearly six decades, the CBI has endeavoured to portray business as a force for good.
It has lobbied government on behalf of its member companies and promoted and shared best practises among them.
However, its future is presently uncertain.
Prior to Friday, the majority of membership-paying companies stated that they would await the findings of an independent investigation into allegations of misconduct at CBI events, including rape and drug use, before deciding their relationship with the organisation.
However, a second allegation of rape in an overseas CBI office precipitated a deluge of businesses suspending or terminating their membership.
The CBI has attempted to move swiftly by announcing the expedited return of former chief economist Rain Newton-Smith to assume the position of director general.
However, on Friday, the organisation acknowledged the gravity of the exodus and announced it would suspend all membership activities until a June emergency general meeting.
It is unknown how the findings of the Fox Williams report, which is anticipated early next week, will affect the shocked membership and the cautious government, which has also suspended engagement.
Given the gravity of the allegations, the authorities have launched their own investigation, and it is not certain that members – or the government – will reengage with a criminal investigation hanging over certain employees.
This weekend, the future of an organisation that has characterised itself as “the voice of business” in the United Kingdom is in grave doubt.
Staff worries
According to a source close to CBI employees, the recent crisis has taken a “emotional toll” on staff.
“Initially, there was relief that people were discussing it,” said the source. It appeared that making the information public held management accountable.
“However, now that darker allegations have surfaced, this has been difficult for the employees.”
According to the source, there has been a “avalanche” of resignations, and employees are apprehensive about their jobs.
“They are concerned about the business’s viability tomorrow,” a source explained.
The BBC understands that employees will continue to work and be paid normally until at least June.
The Association of British Insurers and Energy UK, which represents energy suppliers, have also departed.
