CBI president in early exit as lobby giant fights to survive

1 year ago 36
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Businessmen against City of London backdropImage source, Getty Images

By Noor Nanji

Business reporter, BBC News

The president of the CBI is to step down earlier than planned as part of an overhaul of the leadership of the embattled business lobby group.

Brian McBride is to start the search for his successor, with the handover due to take place in the new year.

The move is part of a "programme of change" the CBI is launching to try to restore trust in the body.

The organisation has been rocked by allegations of misconduct, including rape and sexual assault.

The CBI's new director general, Rain Newton-Smith, said the group had "listened" and was "taking accountability".

The lobby group is currently fighting for its survival, having suspended its day-to-day operations following the allegations.

A number of major firms, including John Lewis and BMW, have quit the CBI following the claims. Others such as Tesco and Sainsbury's have suspended engagement with the group, which claims to represent 190,000 firms.

The government has also paused engagement, with Chancellor Jeremy Hunt saying there was "no point" working with the CBI when its own members had deserted it.

The group will only resume its activities if members back its plans for change at an extraordinary general meeting scheduled for 6 June.

When the first allegations of harassment and sexual assault emerged in early April, the lobby group asked the law firm Fox Williams to investigate.

Following the release of the Fox Williams report, Mr McBride began an examination of the CBI's governance.

As a result of this work, the group will begin an accelerated search for Mr McBride's successor, the CBI said on Wednesday.

Other moves include a refresh of the CBI board, and the creation of a new committee to focus on people and human resources matters at the CBI.

Mr McBride said the group was making "significant and fundamental changes" to improve the organisation.

"We remain determined to restore the confidence of our members, and that of our many stakeholders, in the CBI," he added.

The CBI said it has been directly engaging with more than 1,000 business leaders over April and May as part of its "programme of change".

Ms Newton-Smith said: "We need a strong voice of business, backed by a depth of economic analysis and insights from across the whole economy and entire country.

"A renewed CBI can once again have a voice on the serious economic challenges the UK faces, with a general election approaching at pace."

She added: "We shall learn the lessons and emerge from this as a stronger organisation."

The allegations at the CBI include claims of harassment and sexual assault including two allegations of rape, one at a summer party held by the group in 2019, another at one of its overseas offices.

The City of London Police is currently investigating the rape allegations.

The director general of the CBI, Tony Danker, has already been dismissed. He was the subject of separate complaints of workplace misconduct, unrelated to the sexual assault and rape claims, for which he has apologised.

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