The governing body of the City of London has administered a fresh blow to the CBI by announcing that it has suspended its membership in the scandal-plagued business lobbying group.
The decision of the City of London Corporation will not inspire confidence in the CBI’s efforts to endure the crisis.
The City of London Corporation made its decision twenty-four hours after Britain’s largest employers’ group took steps to restore confidence in the wake of a series of resignations and suspensions.
In response to the report of a second female worker’s alleged rape, they gained momentum last Friday.
The departure prompted the CBI to suspend operations.
Monday, President Brian McBride announced a reorganization of the company’s culture and governance controls, acknowledging that the company had failed its employees on many fronts for many years, particularly in the area of sexual harassment.
In an open letter to the membership, he admitted he was uncertain whether the CBI could regain trust.
Recent allegations have revealed a culture of abuse at the CBI, which the City of London Corporation condemns in the strongest terms,” the organization said in a statement.
It added, “The voice of business is important, and we must ensure that it is one that people and other businesses can trust.
At least 12 women have reported the allegations to City of London Police.
The majority are believed to involve sexual harassment.
In the aftermath of the dismissal of director general Tony Danker a fortnight ago, the CBI confirmed on Monday that several other employees had been terminated for failing to meet behavioral standards.
He has never been the subject of significant allegations of wrongdoing.
As the organization contends for its survival, it has suspended all membership activities until June and appointed its former chief economist Rain Newton-Smith as director general.
However, members have criticized the appointment as premature as well as the CBI’s handling of the matter in general.
Andy Wood, CEO of pub company Adnams, told that the CBI brand was “probably irreparably damaged.”
“A number of the discussed measures should have been in place all along,” he said of the open letter. I expected this from a representative organisation representing some of the UK’s biggest and best-known corporations.
“Although I appreciate the letter and the apology, I’m not convinced that zero tolerance for bullying and harassment, training leaders to recognize bullying and harassment, and appointing a chief people officer go quite far enough and are not quite the root-and-branch reform that was discussed last week.”
