The Confederation of British Industry will step back earlier than planned from its role in a boardroom diversity initiative involving the UK’s biggest companies, as the business lobby group struggles to recover from sexual misconduct allegations.
The CBI had been at the heart of the Change the Race Ratio campaign, which champions racial and ethnic minority representation on UK company boards and leadership teams, with some of its staff helping to run it.
However, some of the most high-profile of the scheme’s 111 corporate signatories had reportedly discussed cutting ties with the business lobby group recently.
The Confederation of British Industry (CBI) is the UK’s most prominent business lobbying organisation. It is a not-for-profit organisation founded by royal charter in 1965, after a merger of older employer bodies.
It claims “unrivalled” access to government. It also claims to have the biggest number of policy specialists outside of Whitehall, the seat of the British government, in order to support its 190,000 business members, which are the chief source of its income. Its total income was £25m in 2021, of which £22m was from membership fees.
Its membership is composed of direct members and members of other trade bodies.
Its 1,500 direct members are businesses that actively hold membership. Fees vary significantly: top-tier businesses can pay £90,000 annually, some mid-sized companies pay half this price and smaller companies pay far less.
The bulk of its membership comes via trade bodies, and it counts these memberships within its own 190,000 total.
The lobby group has access to the prime minister and cabinet, and campaigns on issues ranging from funding for childcare to tax and skills. Its relationship with the UK government was stretched severely by Brexit, with its access to No 10 much curtailed. A remark attributed to the former prime minister Boris Johnson – “fuck business” – was considered to be aimed at efforts by the CBI and others to try to influence the post-Brexit UK-EU trade agreement.
The organisation sought to rebuild ties with the government during the early stages of the coronavirus pandemic, including working alongside trade unions and No 10 on developing the furlough scheme.
The CBI is governed by a president and an executive committee, which, in normal times, is chaired by the director general. It also has a board of non-executive directors, which the director general sits on.
Anna Isaac
Companies involved in the talks include Aviva, Schroders, Sage and two of the “big four” accounting and consultancy firms, EY and Deloitte, according to the FT, which first reported the discussions.
The CBI said on Monday that the campaign was always expected to become a totally separate operation. However, the handover is understood to be taking place earlier than expected, amid lingering uncertainty across the British corporate landscape about continued association with the lobby group.
“In line with an agreed long-term plan, the campaign will now be established as an independent entity,” a CBI spokesperson said.
“We remain clear that increasing ethnic minority representation on UK boards and in leadership is absolutely crucial.
“We know that diverse companies perform better on every metric, and leading by example is the only way to effect lasting change. We will continue in our work to empower organisations across the UK to aim higher and go further in creating truly inclusive workplaces.”
It comes after the CBI was plunged into crisis by reports in the Guardian about alleged sexual misconduct at the business lobby group, including two claims of rape that led to a police investigation.
The CBI director general, Tony Danker, stepped down over a separate series allegations about his own conduct, later saying he had become the “fall guy” for broader accusations about the group.
The lobbying group has since launched an overhaul of its culture and governance and plans to change its name, as it aims to woo back a flurry of companies that cancelled their membership in the wake of the scandal.
The scandal led to the CBI being frozen out of industry discussions with the government and the opposition, although the group has recently started meeting again with ministers and their shadow counterparts.
Sage said it ended its CBI membership in April, and discussions with Change the Race Ratio regarding its future, and Sage’s involvement, were ongoing.
The Guardian approached Schroders and Deloitte for comment. EY and Aviva declined to comment.
