CBI to suspend operations until June after exodus
of top UK businesses
Companies from John Lewis to NatWest quit membership
body after Guardian revelations over alleged sexual misconduct
Anna Isaac,
Graeme Wearden and Danya Hajjaji
Fri 21 Apr
2023 19.52 BST
The
Confederation of British Industry has announced it is to mothball its
operations until June after the Guardian’s revelations about alleged sexual
misconduct by male employees at the lobbying group led to an exodus of
businesses including John Lewis and NatWest.
The CBI’s
board said it was suspending all membership and policy activity until an
extraordinary meeting in June, when members will vote on its future and
purpose.
The
Guardian has published a series of accounts of more than a dozen women who
claimed they were the victims of sexual misconduct by men at the CBI, including
two women who said they were raped by colleagues.
After the
latest revelations on Friday, in which a woman said she was raped by two male
colleagues who worked with her at an overseas office of the CBI, more than 50
of Britain’s biggest businesses quit or suspended engagement with the group.
Among the
other prominent companies to cut ties with the CBI are Accenture, Arup, Aviva,
BMW, Fidelity International, Jaguar Land Rover, Kingfisher, Phoenix Group,
Sage, Tesco and Virgin Media O2.
Details of
the latest rape allegation were passed to police by the CBI. Last week, the
City of London police began investigating a series of misconduct allegations
made by over a dozen women towards CBI managers.
The
Guardian revealed a pattern of alleged inappropriate behaviour from male employees
towards their female colleagues. One woman said she was raped by a manager on a
2018 summer boat party on the River Thames.
That same
year, another woman based at the CBI’s London office complained she was being
stalked by a male colleague in person and online. While the CBI held a finding
of harassment, sources claim the woman was actively discouraged from making a
police report and the alleged perpetrator kept his job.
Earlier
this month, the government suspended its relationship with the CBI over the
previous allegations.
The CBI,
which claimed to represent 190,000 businesses prior to the exodus, was founded
by royal charter in 1965. Its effective mothballing means an uncertain future
for its workforce of more than 300 staff.
The board
said in a statement that “much needs to change” for it to win back the trust of
businesses.
It said:
“The CBI shares the shock and revulsion at the events that have taken place in
our organisation, and at past failures that allowed these events to happen. We
are deeply sorry and express our profound regret to the women who have endured
these horrific experiences.
“We have
listened carefully to what our colleagues, members and stakeholders have said
over recent days and weeks. We have heard loud and clear a demand for
far-reaching change.”
It plans to
spend the next two months before the meeting speaking to staff, businesses,
experts and others about its future role.
“This work
and the cultural reform will be the entire and urgent focus of the organisation
over the coming weeks,” it said.
“We are
taking steps to address our failings but recognise these are not yet sufficient
to sustain the confidence of our colleagues, members and of the broader
business community,” the company continued.
“We know it
will take time to rebuild trust in our purpose and culture. And to give our
team and former colleagues the space to heal.”
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