Factbox: What is embattled British business group the CBI?

After several businesses departed over workplace misbehavior and two women’s rape allegations, the Confederation of British Industry (CBI) trade group paused policy and membership activity until June.

CBI information:

The CBI?
The CBI is Britain’s leading business lobby. The CBI, a non-profit organization, representing 190,000 businesses employing approximately 7 million people, including many of Britain’s largest.

London-based, it includes regional offices across Britain and overseas offices in Brussels, Beijing, New Delhi, and Washington.

Former presidents include John Allan, now Tesco’s chairman, Mike Rake, former BT Group chairman, and Karan Bilimoria, inventor of Cobra Beer and the organization’s vice president.

The CBI earned 25 million pounds ($31 million) in 2021, 22.2 million of which came from membership fees, according to its latest released reports. Events, leadership programs, surveys, data licensing, and consulting generate revenue.

What’s its public role?
The CBI typically boasts of its policy lobbying achievements in the British media and with cabinet members.

It claims to have more than 100 economic and policy experts, the largest outside government.

Finance minister Jeremy Hunt followed some of the group’s proposals in the March budget, including boosting childcare funding and allowing corporations to deduct 100% of capital spending against profits.

The 2022 conference featured Prime Minister Rishi Sunak and Labour Party leader Keir Starmer.

Sunak called the CBI “a valued institution in this country and a powerful voice for business” in his remarks.

The organization also conducts economic surveys on the private sector including manufacturing and retail enterprises.

WHAT HAPPENED?
The Guardian revealed last week that a female employee claimed a manager raped her at an office party on a boat in 2019. The CBI labeled it “a serious criminal offence.”

A second woman told The Guardian on Friday that two CBI employees raped her at one of the group’s overseas locations. Another CBI employee in London was stalked in 2018 and discouraged from reporting him to police.

“Shock and revulsion at the events that have taken place in our organisation” was the CBI board’s Friday statement.

Since March, the CBI has faced larger claims of workplace wrongdoing, which led to the removal of its director-general, Tony Danker, this week over staff complaints unconnected to the rape allegations.

Members’ reactions?
NatWest, John Lewis, Virgin Media O2, Aviva, Phoenix Group, and Zurich Insurance Group left the CBI by Friday.

Tesco, Sainsbury’s, Marks & Spencer, Rolls-Royce, and Santander also paused or suspended their ties.

The administration halted high-level CBI meetings this month.

CAN IT LIVE?
On Friday, the CBI’s board said it had “heard loud and clear a demand for far reaching change” and will pause its activities to gather feedback on its future function and purpose.

An Extraordinary General Meeting in June will present “refocused CBI” recommendations.

“Our members have told us in recent days and weeks that they believe in the importance of a collective voice to inform national policy… but much needs to change if we are to win back their trust,” it stated.

Some doubt the organization’s viability. NatWest’s spokesperson claimed the firm didn’t trust the CBI to represent British business.

Adnams CEO Andy Wood said the CBI “run its course”.

“It’s a pity that it’s happened this way but I think industry can think better about how it represents itself and is represented to government,” Wood told BBC Radio. The CBI brand may be irreparable. It will need a complete makeover.”