Sexual misconduct scandal
In March 2023, The Guardian reported on a sexual harassment complaint made against CBI director-general Tony Danker with additional allegations by other staff members. The CBI started an independent investigation, and Danker was replaced as head of the CBI by Matthew Fell, the organisation's UK policy director, on an interim basis. [13] [14] In January 2024 it was announced that the CBI had settled on undisclosed terms an action for wrongful dismissal brought against it by Danker. [15]
On 3 April 2023, The Guardian published a report with more than a dozen current and recent women employees of CBI alleging to have been victims of sexual misconduct, including one rape, independent of the previously reported Danker allegations. [16] CBI expanded its investigation to include the new allegations and cancelled all future events, including its annual dinner. [7]
On 11 April 2023, the business group appointed its former Chief Economist Rain Newton-Smith as its new Director General, one month after she had left the CBI to join Barclays. [17] [18]
On 21 April 2023, the Guardian reported that a second woman has said she was raped by CBI colleagues. [19] On the same day, a number of major UK companies terminated their memberships with the CBI including Arup, Aviva, Phoenix Group, John Lewis, Mastercard, Virgin Media O2, Zurich Insurance Group, Ernst & Young, NatWest, WPP plc, and BMW. [20] [21] [22] [23] Other major members of the CBI, including Barclays, HSBC, TSB, Lloyds Banking Group, Asda, Meta, Uber, PwC and many more announced they were pausing activities with the CBI pending the outcome of the investigation. [24] The CBI has appointed law firm Fox Williams to conduct an independent investigation into the allegations. [25] The group has suspended three employees pending the outcome of an investigation by Fox Williams. [26]
In May 2023, the CBI announced that it had appointed Principia Advisory to assist it to "identify the root causes of past failure, and recommend the changes required for cultural renewal and rebuilding trust". [27] The CBI conducted a poll asking its members the question: "Do the changes we have made − and the commitments we have set out − to reform our governance, culture, and purpose give you the confidence you need to support the CBI?" The result, announced on 6 June 2023, was that 93% of its members voted in favour of continuing to support the organisation; [28] however it later became known that turnout was only 28%, so fewer than a third of members voted in support. [29]
In September 2023, it was reported that the CBI was seeking around £3 million from its members within days of its Annual General Meeting in order to avoid 'financial oblivion'. [30] On 20 September the organisation's AGM was meant to be held. It was announced the day prior that this would be postponed until further notice. [31]
In September 2023, it was reported that the UK Chancellor of the Exchequer, Jeremy Hunt, had agreed to hold face-to-face talks with Rain Newton Smith ahead of the Chancellor's Autumn Statement, set to be held in November. This news came five months after the Chancellor had claimed there was 'no point' in engaging with the CBI following its recent scandals. [32]
In March 2024, The Guardian reported that the CBI had used gagging clauses (non-disclosure agreements, NDAs) to prevent staff from discussing their sexual misconduct and bullying experiences at the organisation. The NDAs were accompanied by substantial financial settlements, with the total bill approaching £1m. [33] The exodus of fee-paying members had made CBI's financial situation precarious, forced it to lay off one-third of its 300 staff in a year. [33]
Rupert Soames took up the position as the CBI's new President in early 2024. [34] [35]
