The Confederation of British Industry (CBI) has sacked director-general Tony Danker, saying his conduct “fell short of that expected” of his position.
The CBI said it had taken the decision following an independent investigation into complaints of workplace misconduct against its boss.
The former boss said that he was “shocked” by the decision and claimed that allegations against him had been “distorted”.
The CBI suspended three other unnamed members of staff.
Last week, The Guardian newspaper said that it had been approached by more than a dozen women who claimed to be victims of various forms of sexual misconduct, including one who said she was raped at a staff party.
“Tony Danker is dismissed with immediate effect following the independent investigation into specific complaints of workplace misconduct against him,” the CBI said in a statement.
“The board wishes to make clear he is not the subject of any of the more recent allegations in The Guardian but has determined that his own conduct fell short of that expected of the director-general.”
Rain Newton-Smith, the CBI’s former chief economist, will rejoin the organisation as its new director-general, it added.
Mr Danker issued a response this morning, expressing “shock” at his dismissal having not been “invited to put my position forward as was originally confirmed.”
“I recognise the intense publicity the CBI has suffered following the revelations of awful events that occurred before my time in office,” he wrote on Twitter.
“I was appalled to learn about them for the first time last week, but was nevertheless shocked to learn this morning that I had been dismissed from the CBI, instead of being invited to put my position forward as was originally confirmed.
“Many of the allegations against me have been distorted, but I recognise that I unintentionally made a number of colleagues feel uncomfortable and I am truly sorry about that. I want to wish my former CBI colleagues every success.”
Mr Danker, a former government advisor turned business champion, took over leadership of the CBI from its first ever female boss during the pandemic.
As director general, he championed green investment and the inclusion of women at the top of the workplace, as well as reform of the UK’s expensive childcare system.
He asked to step aside on 6 March pending an independent investigation into complaints about his workplace conduct.
Mr Danker’s action came after The Guardian approached the CBI over the complaints, which included claims from a female employee that the business boss made “unwanted contact with her and considered this unwanted conduct to be sexual harassment”.
The group launched an investigation into his behaviour and he agreed to step down in the meantime. The first part of this investigation by an outside law firm has been completed, the CBI said.
The CBI said: “The allegations that have been made over recent weeks about the CBI have been devastating.
“While investigations continue into a number of these, it is already clear to all of us that there have been serious failings in how we have acted as an organisation. We must do better, and we must be better.
“We apologise to the victims of this organisational failure, including those impacted by the revulsion we have all felt at hearing their stories. Nobody should feel unsafe in their workplace.”
The CBI said that the outside law firm would continue its investigation and the business group would cooperate fully if the police launch any investigations.
The group will also launch a root-and-branch review of its culture, governance and processes, and create a new position of chief people officer.
“We wish to thank all those who have had the courage to speak out, through internal or external channels, and encourage them to keep doing so,” it added.
Following her appointment, Ms Newton-Smith said: “It’s a huge privilege to be asked to return to the CBI to serve as its director-general.
“I passionately believe in the power of business to transform our society. I want the CBI to be an organisation of which we can all be proud.
“I am grateful and determined to lead the team through this challenging time. I look forward to working with the team, our members and stakeholders as we work together to achieve sustainable growth.”
