Wind down CBI right now, says RUTH SUNDERLAND

Even if the CBI wins its confidence vote tomorrow, its future is cloudy. It’s so bad that even ITV – no stranger to scandal itself – has decided not to be a member anymore.

The lobby group is laying off a large number of staff in order to cut salary costs by a third, which is not exactly a vote of confidence from the leadership.

The prospectus it just released, intended to convince members to unite, is a depressing document laced with business jokes.

Reactions to the sex and drug scandals include “the establishment of a new People & Culture committee and an external expert-led Advisory Committee on Culture.” Is it just me or does that sound a bit Maoist?

The media are not admitted to the extraordinary general meeting, which is in poor form and again shows a lack of confidence.

Most companies consider it good practice to open the doors to reporters at such events.

One question members may ask, however, is how much of their money the CBI has given to Principia Advisory, which calls itself “the leading consultancy for building ethical organizations,” for its insights.

These included the profound observation that generalized descriptions of CBI culture as misogynistic and toxic were not “helpful.”

The debacle has undoubtedly been a good thing for Principia founder Dr David Rodin, who is British but lives in Switzerland, where the controlling company is based.

But what does it mean when the UK’s leading business organization has to hire ethics consultants? Is the concept of treating colleagues with respect and acting with integrity really that difficult to grasp?

Members could also ask how much the panicked CBI spent on the Fox Williams report — and why it hasn’t been published in full — along with the surveys, “listening exercises,” fees to attorneys and other advisers it earned.

Despite all this activity, there is a lack of transparency. There is no information on actions taken against individuals for their alleged behaviour, except for ousted former director-general Tony Danker and ex-chairman John Allan, neither of whom were charged with the most serious wrongdoings.

It seems impossible for CBI members to cast an informed vote when so many important issues remain unresolved.

Police investigations can take months and lawsuits can follow. Danker, who is clearly furious, rumbles ominously in the background. Allan also feels sad about his premature departure from roles at Tesco and Barratt in the fallout.

It’s hard to imagine who would want to replace outgoing President Brian McBride. It looks like a potentially poisoned chalice.

If the CBI loses the vote, or narrowly wins, there seems to be little choice but to back out. Supposing it is mandated to continue – and it gained the backing of companies like Siemens, Microsoft and Esso over the weekend – there are still questions about whether it can attract the new members it needs to build a future on to have long term.

Imagine if the scandals had never happened. The CBI would still be faced with questions about its relevance. A FTSE 100 boss I spoke to this week says he never considered joining because he felt membership was of no use to him. For a young tech entrepreneur, it must look hopelessly stuffy and outdated.

It was founded 60 years ago when business meant manufacturing and a strong force was needed against a powerful trade union movement. The world has changed and it’s not just attitudes towards women that seem outdated. It would be best not to prolong the agony.