CBI to face no-confidence vote today with future in the balance
THE CBI, Britain’s decades-old business body, will find out if it has a future today after members vote on the group’s response to a string of sexual misconduct allegations.
Members of the body are set to cast ballots at an extraordinary general meeting this afternoon at the outfit’s Cannon Street headquarters. They will opine on the organisation’s ‘role and purpose’ in what is effectively a no-confidence vote in the CBI’s new leadership.
It comes after a wave of allegations mired the top business lobby group in scandal, with claims of sexual harassment, workplace misconduct and rape damaging its reputation. Many of the claims are so far unsubstantiated.
Former director-general Tony Danker was dismissed after claims of misconduct – unrelated to sexual abuse – were made against him, while the government and Labour cancelled their engagement with the body.
Around a quarter of the organisation’s members either terminated or suspended their membership.
“Not bold enough”
It is believed that the results of the ballot will not be released in full, with no detail on how members voted. The meeting will last around 90 minutes, from midday, with a verdict expected mid-afternoon.
The CBI last week published an outline of how their culture and processes would change, though pushed back against allegations of a ‘toxic’ or ‘misogynistic’ culture. The president of the body Brian McBride mounted a robust defence of the organisation yesterday, writing in the Financial Times that the body’s “position has been put in jeopardy.”
But he insisted the CBI had listened; increased accountability structures; worked with business ethics consultancy Principia; and was en route to implementing 34 recommendations from the legal firm Fox Williams, which investigated the claims.
Urging members to back the leadership’s plan, he wrote: “Succeed and we can make a leaner, more accountable and inclusive organisation. Fail and we lose precious time to fight for our members.”
Regardless of the vote, the pull-out of a host of large fee-paying members is likely to trigger redundancies.
Yesterday a spokesperson for the nascent lobbying organisation BizUK said the CBI “is not able to carry out the role that its members have signed up for.
“That relationship [with government] is in the deep freeze and the idea that the package set to be voted on Tuesday will change anything overnight is wishful thinking.”
Last week No 10 sources told City PM the body’s package did not look “bold” enough for the government to re-open engagement with the CBI, but said all options were on the table if members demonstrated confidence.
That relationship is in the deep freeze
BizUK on the CBI’s government lobbying efforts
Viv Paxinos, CEO of the global women’s network, AllBright, says: “The CBI wants to be the collective, national voice of business but to do that its leadership must take responsibility, not pass the buck of governance onto a newly formed culture and people committee and expect them to manage it.
This is the leadership priority.
“The current turnaround plan isn’t bold enough on measurable feedback. For it to have a strong, impactful future the CBI needs to capture data regularly on what is working and not working in the organisation and across its membership,” she added.