Big business mulls quitting scandal- hit CBI
Big companies consider ending CBI scandal: Trade group suspends three employees as police investigate drug and rape claims
Heavyweight business members of the Confederation of British Industry (CBI) are weighing whether to pull out of the group as it faces an existential crisis over a sex and drug scandal.
Engine maker Rolls-Royce said it was awaiting the outcome of an internal investigation before deciding whether to remain a member of the corporate lobby group.
Another major player will consider its options once the CBI’s report is complete. And a senior source at a third major firm admitted that any rumblings from staff or shareholders about membership could force the hand of bosses.
Out: Fighting to survive a sex and drug scandal, the CBI fired boss Tony Danker (pictured) on Tuesday after misconduct allegations surfaced this year
Fighting to survive the scandal, the CBI fired boss Tony Danker on Tuesday over allegations of misconduct that surfaced this year.
Meanwhile, police are investigating separate claims that emerged last week that saw three members of staff suspended.
A woman said she was raped at a CBI staff party on a boat on the River Thames. There were also claims of widespread cocaine use.
The scandal has emboldened critics who say the CBI is not fit for purpose and should be dissolved.
However, others, including Warren East, the former CEO of Rolls-Royce, argue that it provides an important platform for companies, especially smaller ones. The CBI represents 190,000 UK businesses of all sizes and sectors.
Without their subscriptions, it loses the funding it needs to hold high-profile conferences and maintain a public presence.
A leading FTSE 100 firm said Danker’s dismissal was “quite decisive”. It will “wait for the outcome” of a report commissioned by lawyers before determining a response.
“We will not be participating in engagements with the CBI in the interim,” the source said. Getting out was not out of the question.
Rolls-Royce said: ‘The recent allegations are very worrying.
We take note of the actions announced by the CBI and that investigations continue. We await completion before considering membership.”
John Longworth, the former boss of the British Chambers of Commerce, said the CBI has been “unfit for purpose” for “some time”.
He called the organization “a double of Whitehall” and said it was “not run by entrepreneurs to do business”.
East said, “Companies with a strong global brand and good access to government need less help to be heard.
“But small and medium-sized businesses that are a critical part of the economy don’t often have such benefits, and I’ve seen industry associations like the CBI and others very helpful in giving them a voice.”