The Confederation of British Industry (CBI), the embattled business lobbying group representing thousands of employers, has outlined its renewal plans ahead of an extraordinary general meeting next week.
The CBI has been plunged into crisis in recent months as allegations of sexual misconduct and rape emerged and many high-profile employers including John Lewis, BMW and Aviva either cancelled or suspended their membership.
Today it said an ambitious “programme of change” is already well underway to increase trust with its membership and improve the organisation for the better.
CBI renewal plans include making wide-ranging changes to its people processes, governance structures and organisational culture, and refining its core purpose. It has published its plans in a prospectus, A Renewed CBI – for our Members, our Stakeholders and our People.
The CBI has a unique role. We will work in collaboration and partnership with our members on these shared challenges, which is why this programme of change is so important. There’s not a moment to lose” – Rain Newton-Smith, CBI director general
Rain Newton-Smith, CBI director general, said: “Our members and colleagues have spoken. We have listened, we have acted and we are taking accountability. An accelerated programme of change on people, governance and culture is already underway with a more focused, collaborative approach on our purpose lifting up the voices of our members.”
Newton-Smith took over at the helm of the CBI following the dismissal of the former director-general Tony Danker, after the board found his conduct had fallen short of expectations. Danker had faced allegations of inappropriate behaviour towards female colleagues, but these were not linked to his dismissal, the CBI said.
Law firm Fox Williams made 34 recommendations in relation to all the specific allegations made as well as any broader learnings for the CBI, which its board accepted in full. Lawyers found that although the CBI was unaware of the most serious allegations at the time, its systems of culture management were insufficient.
Earlier this month, Elizabeth Wallace was appointed interim chief people officer, responsible for implementing the full set of recommendations and taking further steps to improve the CBI’s people processes, including mandatory training covering harassment and bullying, best practice in employee relations, mental health awareness and employment law.
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Newton-Smith added: “A renewed CBI can once again have a voice on the serious economic challenges the UK faces, with a general election approaching at pace.
“The CBI has a unique role. We will work in collaboration and partnership with our members on these shared challenges, which is why this programme of change is so important. There’s not a moment to lose.”
Principia, a consultancy for building ethical organisations, is leading the CBI culture review.
In a statement it said: “Through this process, we have determined that the CBI has an outward-facing culture that exhibits significant strengths – a strong external identity and purpose that staff understand and find motivational. However, the CBI has underattended to developing a strong, values-based organisational culture and has under-prioritised people management skills.
“While we do not find that blanket descriptions such as ‘toxic’ or ‘misogynistic’ are accurate or useful descriptions of CBI culture, attitudes towards culture are inconsistent, with a lack of awareness of different experiences and limited self-reflection. This results in an underdeveloped and inconsistent organisational environment, with unclear expectations for behaviours and ways of holding people to account.”
According to Sky News yesterday, the CBI board has appointed lawyers to prepare for possible insolvency. City sources said the legal advice was partly focused on CBI directors’ decision-making about continuing to trade the organisation as a going concern.
Governance changes include a refreshed board that ensures “fresh talent and diverse perspectives”, and an accelerated search for a successor to the role of CBI president, after Brian McBride said he was stepping down early in 2024.
Over 90% of respondents to the CBI’s purpose and culture survey said ensuring sustainable growth in the economy was the body’s priority.
From the survey and across many conversations with businesses, the CBI found the most critical economic and national issues identified were the future of work and skills, the UK as a competitive location for business, as well as climate, ESG and energy.
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The EGM takes place on 6 June where members will vote on the CBI renewal plans with the resolution: “Do the changes we have made − and the commitments we have set out − to reform our governance, culture, and purpose give you the confidence you need to support the CBI?”
