The CBI reportedly used non-disclosure agreements last year to prevent staff from discussing their experiences of sexual harassment, abuse and bullying.
According to The Guardian, up to 10 NDAs, accompanied with substantial financial settlements, were used to silence alleged victims in 2023.
Last year several claims of sexual harassment and misconduct by senior figures at the CBI emerged, including one allegation of rape at a summer party.
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Former general-secretary Tony Danker was dismissed by the organisation after the allegations came to light, although the organisation said his departure was unrelated to the misconduct and sexual harassment claims. It recently reached a legal settlement with Danker.
Sources told the Guardian that the NDAs are thought to have cost the CBI as much as £1m.
CBI’s chief executive, Rain Newton-Smith, who rejoined the organisation last year, told the newspaper that she did not believe the agreements would prevent staff from taking complaints to the police.
She said: “I’ve seen some but not all. You know, it’s important that NDAs – I’m just trying not to use that terminology – but any confidentiality clauses, do not prevent individuals from raising further issues of sexual misconduct.”
She said the CBI would continue to use NDAs but would keep their use under review.
She added that recent staff survey results showed that employees felt happy with the body’s culture and that they knew how to raise concerns about misconduct.
“We’ve had a really difficult year and I think everyone in this organisation has shown tremendous courage over the past year in implementing a huge programme of change,” she said.
A CBI spokesperson said: “As is common practice in settlement agreements we do have clauses within them covering confidentiality, whose purpose is to mutually protect both parties’ confidential, private, commercial and personal information and data.
“This does not restrict the individual from reporting any misconduct, crime, or regulatory breach to authorities, or from making protected disclosures. In all such cases the CBI ensures that the other party has their own independent legal advice.
“We actively encourage a ‘speak-up’ culture with all employees trained in the process. Staff also have access to an app which allows them to do so anonymously if they wish.”
The spokesperson added that the CBI ha its Good Business Charter accreditation reinstated recently, in recognition of the steps it has taken to improve its workplace culture.
“Change is hard and emotional at times, but we have developed stronger values and culture through the processes we have put in place, so that we are better set up to deliver for our people and our members. Listening – and responding – to our people through our quarterly employee surveys is our absolute priority as we continue our efforts to have an inclusive and open environment for our people and our members,” the spokesperson said.
The government has faced numerous calls for NDAs to be banned in sexual harassment cases, including from MPs on the Treasury committee’s sexism in the City inquiry.
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The inquiry found that NDAs were often “misused” in the sector to cover up abuse, sexual harassment and discrimination, “leaving victims slienced while perpetrators go unpunished”.
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