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2023.04.22 22:50 GMT+8

EXPLAINER: What is the CBI and why is it at risk of collapse?

Updated 2023.04.22 22:50 GMT+8
CGTN

The CBI's troubles show no sign of abating. /Toby Melville/File Photo

The Confederation of British Industry trade organisation has suspended all policy and membership work until June after a string of businesses quit following staff complaints about workplace misconduct and allegations of rape by two women.

Major British corporate names including NatWest, John Lewis and Virgin Media O2 quit the CBI on Friday after the Guardian newspaper reported allegations by a second woman that she had been raped by two CBI colleagues, following a separate rape allegation and news of a police investigation last week.

The CBI, which claims to represent 190,000 businesses including many of Britain's biggest companies, is facing a battle for survival as a growing number of firms cut ties.

The body has been beset by allegations of workplace misconduct since March, which led last week to the firing of its director-general, Tony Danker, over separate staff complaints unrelated to the rape allegations.

What is the CBI?

Founded in 1965, the CBI is Britain's top business lobby group. A not-for-profit organisation headquartered in London, it has several regional offices around Britain and international offices in Brussels, Beijing, New Delhi and Washington.

What is its public role?

The CBI has a strong presence in the British media and has the ear of cabinet ministers, often trumpeting its success in lobbying the government over policy.

It has more than 100 economic and policy specialists, which it says represents the largest team of policy experts outside government.

In the government's March budget, finance minister Jeremy Hunt adopted some of the group's recommendations, including expanding support for childcare and allowing companies to offset 100 percent of their capital expenditure against profits.

CBI director-general, Tony Danker was recently sacked over separate staff complaints unrelated to the rape allegations. /Reuters/Phil Noble

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What has happened?

Police opened an investigation last week into what the CBI called "a serious criminal offence" after the Guardian newspaper reported a female member of staff alleged she had been raped by a manager at an office party on a boat in 2019.

The Guardian on Friday also reported allegations by a second woman that she had been raped by two CBI colleagues when she was employed at one of the group's overseas offices. It also said another woman working for the CBI in London was stalked by a colleague in 2018 and discouraged from reporting him to police.

In a statement on Friday, the CBI's board expressed "shock and revulsion at the events that have taken place in our organization."

The CBI has also been beset by broader allegations of workplace misconduct since March, which led last week to the firing of its director-general, Tony Danker, over separate staff complaints unrelated to the rape allegations.

Can it survive?

The CBI's board said it had "heard loud and clear a demand for far reaching change" and would suspend its activity while it gathers views on its future role and purpose.

It will hold an Extraordinary General Meeting in June at which it will put forward proposals for a "refocused CBI."

Andy Wood, chief executive of brewers Adnams, said the CBI had "run its course."

"It's a pity that it's happened in this way but I think industry can think better about how it represents itself and is represented to government," Wood told BBC Radio.

 "Probably the CBI brand is now beyond repair. I think it will have to reinvent itself, root and branch."

 

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Source(s): Reuters
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