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The new director general of the Confederation of British Industry starts work today, promising to “rebuild and remimagine” the scandal-hit lobby group as it fights for survival amid allegations of rape and sexual misconduct.
Rain Newton-Smith takes over from sacked boss Tony Danker who claimed he has been made a “fall guy” for the wider crisis.
The CBI, which claims to represent 190,000 companies employing around seven million people, has admitted it failed to fire staff who had sexually harassed female workers.
Newton-Smith apologised for those failings but said she still believed in the purpose of the CBI.
“I want to recognise the courage of the women who came forward and say how profoundly sorry I am for how our organisation let you down,” she said. “I hope to reward your bravery by finding a better path forward.
“We know there is so much to do to win back the trust of our members, our colleagues and wider society. But I believe in the work of the CBI and our people, and I am determined to rebuild and reimagine our organisation to regain that trust.”
President Brian McBride pledged to implement recommendations following an investigation by a law firm.
Some have questioned whether Ms Newton-Smith is the right person to lead the organisation through the scandal having been a former executive board member.
She worked at the CBI for nearly nine years before briefly leaving to work at Barclays.
Baroness Morrissey, a long-serving financier, told the BBC today: “I’m sure she is wonderful in lots of respects but it doesn’t quite cut the mustard if you’re trying to show that you’re embracing a new approach to all of this.”
Asked if she thought the CBI was finished, she said: “I do I’m afraid.”
It comes after the Guardian newspaper said it had been approached by more than a dozen women who claimed to be victims of various forms of sexual misconduct by senior members of the CBI who were not Mr Danker.
One woman said she was attacked at a staff party on a Thames boat.
Dozens of firms have either ended their membership or suspended any activity with the CBI, including the City of London Corporation, John Lewis, BMW, Virgin Media O2, insurers Aviva, Zurich and Phoenix Group, NatWest, Mastercard, B&Q owner Kingfisher and ITV.
Ann Francke, chief executive of the Chartered Management Institute, added: “If you look at these kinds of reputation implosions, which are very tragic for everybody and weigh heavily on everybody... the usual approach is to get an external perspective to address the very deep-seated issues that need changing.”
Ms Newton-Smith talked this month of making the CBI “an organisation of which we can all be proud”, adding: “I am grateful and determined to lead the team through this challenging time.”