The Confederation of British Industry (CBI) has said it will “suspend all policy and membership activity” until it can hold a meeting of its membership in June after dozens of its biggest supporters withdrew from the organisation.
The CBI board said it would put forward proposals for a “refocused” industry body at the meeting in two months’ time.
It came as major companies and trade bodies from across the UK said they were terminating, suspending or reviewing their membership of the group.
A second unnamed employee of the CBI alleged that she had been raped by a colleague in a Guardian article released on Friday.
In a statement, the CBI board said: “We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose.
“As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an extraordinary general meeting (EGM) in June.
“At the EGM we will put forward proposals for a refocused CBI to our membership for them to decide on the future role and purpose of the organisation.
“This work and the cultural reform will be the entire and urgent focus of the organisation over the coming weeks.”
Among the companies that said they were terminating their membership of the business group were NatWest, the John Lewis Partnership, Vodafone, BMW, Aviva, and Virgin Media O2.
Other major employers - including Tesco, Meta, Sainsbury’s, Asda, Lloyds Banking Group, Unilever and Shell - announced that they were suspending all activity with the lobbying group.
Earlier this month, the UK Government said it would pause all engagement with the CBI after initial reports of misconduct at the group.
In the Guardian report which deepened the crisis on Friday, the woman claimed the alleged rape took place while she was unconscious following a night out while working at a CBI office abroad.
She said she had no recollection of the alleged attack itself but had described in detail the physical signs that led her to believe she had been raped, and was later presented in the office with an explicit photograph.
It is the second rape claim made by a woman at the organisation.
Previously, a member of staff alleged that she was attacked by a manager on a summer boat party in 2019. Details of the new rape allegation have been passed to police.
City of London Police were already investigating the previous allegation, alongside a series of other misconduct claims from about a dozen workers.
Separately, The Guardian also reported on Friday that a woman based at the organisation’s London office claimed she was stalked by a male colleague in 2018.
Separately, former CBI director general Tony Danker was sacked last week after being accused of making unwanted contact with a woman who works for the organisation.
On Wednesday, he said his reputation has been “totally destroyed” by the allegation and claimed he has been made a “fall guy” for a wider crisis.
Danker told the BBC his name had been wrongly associated with separate claims, including the rapes which allegedly happened before he joined the CBI.
After initial allegations, the business group also suspended three other employees and hired law firm Fox Williams to carry out an internal investigation.
The head of a former member of the CBI has said the business organisation has “probably run its course” after a second rape allegation was made.
Adnams Brewery chief executive Andy Wood said continued membership of the CBI was “untenable and unsustainable” after dozens of companies and trade bodies withdrew on Friday.
He told BBC Radio 4’s Today programme: “There’s a human story here and we greatly regret the experience that these young and vulnerable people have had with these alleged events that went on, it sounds truly horrific.
“I think business has said, and Adnams has said, enough is enough, and a tsunami of resignations, suspensions and terminations yesterday I think is evidence of that.
“We’re are an organisation that takes its culture and its values really seriously, and it’s just totally untenable and unsustainable to remain members.”
He added: “I think there are lessons to all leaders to (ask): ‘when people aren’t looking, how does your organisation behave? We have to all take note of what’s happening here’.”
Wood credited the CBI with being “right at the heart” of the furlough scheme which saved millions of jobs during the pandemic, but added that as an organisation “conceived in the 1960s” it has “probably run its course”.
Baroness Patience Wheatcroft, a former non-executive director of Barclays, told Times Radio: “It’s very hard to see that it has a positive future, I’m afraid.
“This organisation has presided over the most extraordinary culture by the sound of it.
“It’s very hard to imagine an organisation where not one but two allegations of rape are now being investigated, and I think it makes it nigh-on impossible for the CBI to do the job that it’s there to do.”
She added: “I think it’s time for a total rethink, not just by the CBI of what it does but a rethink of how business is represented and lobbies government.
“The CBI is having to accept itself that it was clearly deeply flawed and now it’s looking for a new sense of direction… they probably need to disband.”
Companies which have left the CBI
Insurer Aviva became the first to leave the influential trade body, which claims to represent around 190,000 businesses across the UK.
Several companies also said they are or are understood to be reviewing their membership or suspending activities with the CBI.
These included PwC, Asda, Shell, National Grid, Lloyds Banking Group, Diageo, GSK and others.
Below is a list of some of the companies and organisations which have so far announced plans to leave the group or suspend their membership and the statements they have made, if any.
- Association of British Insurers
“It has become untenable to retain our membership in light of further serious allegations and we have informed the CBI of our decision to leave with immediate effect,” an ABI spokesperson said.
- Aviva
“In light of the very serious allegations made, and the CBI’s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK,” an Aviva spokesperson said. “We have therefore regrettably terminated our membership with immediate effect.”
- BMW Group
“The BMW Group is concerned by the allegations relating to the CBI,” a spokesperson for BMW said. “The group has therefore decided to terminate its membership with immediate effect.”
- British Beer & Pub Association
“Following further discussions with our board this afternoon we have taken the decision to terminate our membership with the CBI with immediate effect,” the BBPA tweeted.
- BT Group
“In light of the appalling allegations made, BT Group has decided to suspend its membership of the CBI with immediate effect,” a BT spokesperson said.
- Energy UK
“Energy UK has decided to terminate its membership with the CBI with immediate effect in light of the very serious allegations that have been reported,” an Energy UK spokesperson said. “We know that these allegations will also be shocking and upsetting for the staff at the CBI that we work with, so we will review the situation following the completion of the CBI’s investigations and the actions it takes as a result.”
- EY
“EY has terminated its membership of the CBI and all associated activities with immediate effect,” said an EY spokesperson.
- JLL
“We are terminating our membership of the CBI with immediate effect and have made them aware,” said Stephanie Hyde, UK chief executive at JLL. “In light of the distressing allegations, which continue to point a culture that isn’t aligned to our values, our relationship with the CBI has become untenable.”
- John Lewis Partnership
“Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect,” a spokesperson for the John Lewis Partnership said.
- Kingfisher
“Given the very serious and ongoing further allegations, we have taken the decision to end our CBI membership today,” a Kingfisher spokesperson said.
- Marks & Spencer
“We have paused our membership of the CBI while these allegations are investigated,” an M&S spokesperson said.
- Mastercard
“We have resigned our membership of the CBI. The allegations are extremely troubling and need to be addressed with immediacy by the proper authorities,” a spokesperson for Mastercard said.
- People’s Partnership
“Following the very serious allegations made, we have made the decision that we can no longer remain members of the CBI,” said People’s Partnership director of policy Phil Brown.
- Phoenix
“Further to the allegations reported this morning, we have taken the decision to resign our membership of the CBI with immediate effect,” a spokesperson said.
- Sainsbury’s
A spokesperson for Sainsbury’s confirmed that the business had paused its membership.
- Schroders
“At this time we do not feel the CBI is the right organisation to represent our views so we have decided to exit,” a Schroders spokesperson said.
- ScottishPower
“We are deeply concerned about these extremely serious allegations and are pausing our membership with the CBI with immediate effect,” a ScottishPower spokesperson said.
- Tesco
“We are deeply concerned by these very serious allegations and we have paused our membership of the CBI with immediate effect,” a Tesco spokesperson said.
- Unilever
“Due to the very serious and ongoing allegations, we can confirm that we have suspended our membership of the CBI,” a Unilever spokesperson said.
- Virgin Media O2
“While we respect the ongoing investigations taking place, these disturbing allegations and the way the situation has been handled is not representative of business in Britain,” a Virgin Media O2 spokesperson said. “We have therefore informed the CBI that we are ending our membership.”
- Zurich UK
“We are deeply concerned about the allegations made about the CBI and have decided to terminate our membership with immediate effect,” a Zurich UK spokesperson said.
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