CBI denies ‘toxic’ culture but no sign of government freeze thawing
Government sources have suggested that a much-talked about ‘reset’ of the CBI will not be enough for them to restart engagement with the scandal-hit business body.
The CBI’s new director general Rain Newton-Smith has said “blanket accusations of the CBI’s culture being toxic are not correct” as she looks to rebuild the business body’s reputation after a string of sexual misconduct allegations.
In a prospectus published today, the CBI announced a refresh of the board with four current non-execs to leave by September and confirmed that the CBI’s President, Brian McBride, will immediately start the search for his successor.
It says that a widespread “listening exercise” has identified that firms “want and need a collective, national voice of business with a general election looming.”
Both the Conservatives and the Labour Party have suspended all engagement with the CBI.
Two government sources, speaking to City A.M., suggested little would change in the immediate term.
One said “I don’t think our position will be changing for now” whilst another said the CBI had no “God-given right to be the UK’s premier business organisation.”
The body has appointed a chief people officer to implement recommendations of an independent report by lawyers Fox Williams, which identified 34 areas of improvement which the CBI says will be in place by the time of an emergency meeting next week.
The proposals in the prospectus will go before a vote at that meeting on June 6 – with a no vote likely to signal the end of the CBI.
A host of Britain’s largest corporates have already either terminated their membership of the body or suspended it, with one City source describing the meeting next week as “D-Day.”
A review of the organisation’s culture by Principia, an ethics consultancy, said the body had “under-attended to developing a strong, values-based organisational culture and has under-prioritised people management skills.
“While we do not find that blanket descriptions such as ‘toxic’ or ‘misogynistic’ are accurate or useful descriptions of CBI culture, attitudes towards culture are inconsistent, with a lack of awareness of different experiences and limited self-reflection,” the review reads.
Blanket accusations of the CBI’s culture being toxic are not correct, but we have work to do to embed a consistent set of values for all of our staff.
New CBI chief Rain Newton-Smith
The CBI has brought in Ffion Hague, a board evaluations expert, to conduct a further review into the organisation’s governance.
“Ahead of the EGM, our prospectus brings together the actions we’re taking. We are making radical and rapid changes to upgrade our governance structures and processes,” Newton-Smith – who took over from ousted director general Tony Danker – said.
“Principia’s expert findings show that while our purpose and hard work to influence and inform on behalf of our members gives us a strong identity and motivates our staff, that focus has come at a cost. Blanket accusations of the CBI’s culture being toxic are not correct, but we have work to do to embed a consistent set of values for all of our staff,” she added.
“Through the reimagining of our purpose, we also attract new ones to our mission. For those who recently left, I would ask, what more do you need from us? We will continue to show our value on the important issues of the day,” she added.