Several major companies are skipping a crucial meeting that will decide the future of the Confederation of British Industry (CBI). The lobby group is facing potential collapse amid a sexual assault scandal. According to sources, BT Group, PwC, and Paddy Power parent Flutter are among the companies that will not take part in the vote on Tuesday. Dozens of the UK’s largest businesses suspended engagement with the group following a series of allegations from CBI staff, including two who said they were raped by colleagues. The CBI has said companies that suspended their memberships could take part in the vote, yet many are choosing to stay away.
Companies that quit the group entirely, including banking group NatWest and retailer John Lewis, were not invited to take part. The CBI, under newly-appointed director-general Rain Newton-Smith, will announce the outcome after announcing a reform programme that it hopes can win back the support of business. The vote needs more than 50% to pass, with members receiving one vote each. If the majority vote “no”, the CBI will be wound down.
British chancellor Jeremy Hunt said there was “no point” in talking to the CBI while it is dealing with the allegations. The organisation, which lobbies the UK government, including in the North, on behalf of business and claims to represent 190,000 firms, has told staff to expect job cuts as it has been forced to take “difficult decisions” after the wave of cancellations, said a CBI spokesperson. The majority of its £25m (€29m) annual income comes from membership fees. The CBI employs about 300 people.
The UK government suspended engagement with the CBI in April. British chancellor Jeremy Hunt said at a business event that month that there was “no point” in talking to the CBI while it is dealing with the allegations. Members have been sent a prospectus outlining the CBI’s turnaround plan, while the CBI has appointed ethics consultancy Principia Advisory to help overhaul its operations. Fox Williams, the law firm, has been hired to investigate the allegations.
While a number of businesses have said they will not be attending, others are continuing to listen to the CBI’s plans. Guinness maker Diageo will be sending a representative to the meeting, said a person familiar with the matter.
The CBI is a crucial organisation in the UK, representing the interests of businesses and lobbying the government on their behalf. However, it has been rocked by a series of allegations from staff members, including two who claim to have been raped by colleagues. The scandal has led to dozens of major companies suspending their engagement with the organisation, and some have even quit entirely. This has left the CBI facing potential collapse, and a crucial meeting is set to take place on Tuesday to decide its future.
However, according to sources, several major companies are choosing to stay away from the meeting. BT Group, PwC, and Paddy Power parent Flutter are among those that will not be taking part in the vote. Companies that suspended their memberships are allowed to participate, but many are still choosing to stay away. Those that quit the group entirely, such as NatWest and John Lewis, were not invited to take part in the vote.
The CBI has been forced to take “difficult decisions” in the wake of the scandal, and job cuts are expected. The majority of the organisation’s annual income comes from membership fees, and it employs around 300 people. The UK government has also suspended engagement with the CBI, and British chancellor Jeremy Hunt has said there is “no point” in talking to the organisation while it is dealing with the allegations.
The CBI has announced a reform programme in the hopes of winning back the support of businesses. Members have been sent a prospectus outlining the plan, and the CBI has appointed ethics consultancy Principia Advisory to help overhaul its operations. The law firm Fox Williams has also been hired to investigate the allegations.
While some companies are staying away from the meeting, others are continuing to listen to the CBI’s plans. For example, Guinness maker Diageo will be sending a representative to the meeting. The outcome of the vote will be announced by newly-appointed director-general Rain Newton-Smith, and a majority of more than 50% is needed to pass. If the majority vote “no”, the CBI will be wound down.