The UK government distanced itself from the CBI on Wednesday as Britain’s leading business lobby group investigates allegations of sexual misconduct at the organisation.
The Treasury and the Department for Business and Trade have suspended engagements by ministers and senior officials with the CBI pending the outcome of a probe into claims of rape, sexual harassment and other workplace misconduct at the organisation, according to people briefed on the situation.
The CBI on Tuesday cancelled all external events, including its annual dinner on May 11, which is usually attended by ministers.
The Bank of England confirmed that governor Andrew Bailey, who had been due to give a speech at the CBI dinner, pulled out following the allegations of sexual misconduct first reported by The Guardian.
The Treasury and the business department are two of the main government entities that engage with the CBI, which represents some of the biggest names in corporate Britain including Tesco, Unilever and Barclays.
The CBI has commissioned the law firm Fox Williams to investigate the allegations, and a spokesperson for the organisation said on Wednesday: “We understand the government’s decision to pause engagement pending the outcome of the independent investigation.
“Soon after Easter, the CBI board expects to have preliminary findings and actions from the first phase of the investigation.”
The CBI has two main selling points to its member companies: providing access to government and bringing together executives from UK businesses for networking events. One former CBI employee said without these capabilities, “what is the point of the CBI?”
A second former CBI employee said the allegations were a “serious problem” because the CBI’s reputation as a serious and impartial representative body was its main selling point.
“What pre-eminent business organisation doesn’t have functional connections with the government? . . . They need a public reckoning to show they understand the scale of the problem,” they added.
The CBI is under mounting pressure from some of its member companies to address the allegations of wrongdoing, including of rape and sexual assault at a summer party in 2019, plus other misconduct in the organisation’s workplace.
These claims were published by The Guardian after Tony Danker stepped aside as director-general in early March when separate claims of workplace misconduct were made against him. The latest allegations do not relate to Danker.
Several big companies have said they are reviewing their membership of the CBI, while others have privately distanced themselves.
Admiral, the insurer, said: “We take our association seriously so we will review the response to this evolving situation carefully. We will not tolerate any action or activity that contradicts our cultural principles.”
One international law firm that is a CBI member said it was “pausing CBI-related activity as we await more information and the outcome of any investigation”.
Reporting by Anjli Raval, Robert Wright, Jasmine Cameron-Chileshe, Oliver Barnes, Chris Giles, Dan Thomas, Josephine Cumbo, Ian Smith, Kate Beioley and Bethan Staton