Flood of businesses quit CBI as scandal deepens

A spokesman said: “The CBI shares the shock and revulsion at the events that have taken place in our organisation, and at past failures that allowed these events to happen. We are deeply sorry and express our profound regret to the women who have endured these horrific experiences.

“We have listened carefully to what our colleagues, members and stakeholders have said over recent days and weeks. We have heard loud and clear a demand for far reaching change.

“We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose. As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an Extraordinary General Meeting (EGM) in June.”

The decision followed an unprecedented day of turmoil at the business group, which has been the mouthpiece of Britain’s blue chip companies for 58 years.

Aviva, whose chief executive is Amanda Blanc, became the first major organisation to announce it was cancelling its CBI membership, shortly after the latest allegations were made public. A spokesman said: “We believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK.”

The decision was followed within hours by a wave of further cancellations. Two of the most significant came from John Lewis, chaired by Dame Sharon White, and Natwest, whose chief executive is Alison Rose.

By the end of the day around 50 large companies had either quit the CBI or suspended engagement – a move likely to cost the lobby group millions of pounds in lost membership fees in a serious blow to revenues.

Other significant businesses to leave included EY, Vodafone, Jaguar Land Rover and Virgin Media O2.

Any wind-down of the lobby group could be complicated by the fact that it has a Royal Charter, granted by the monarch and signed off by the Privy Council.

Charters are given to bodies that “work in the public interest and which can demonstrate pre-eminence, stability and permanence in their particular field”.

The Privy Council has said it is not aware of any charter being revoked since the time of Charles II, who reigned during the mid-to-late seventeenth century.

The CBI spokesman said: “Our members have told us in recent days and weeks that they believe in the importance of a collective voice to inform national policy and the unique role that an organisation like the CBI can play in public life.

“But much needs to change if we are to win back their trust so we may continue to represent business at this critical time for the country.

We are taking steps to address our failings but recognise these are not yet sufficient to sustain the confidence of our colleagues, members and of the broader business community.  We know it will take time to rebuild trust in our purpose and culture. And to give our team and former colleagues the space to heal.”

Police are already investigating claims of another alleged rape said to have taken place at a CBI summer boat party on the River Thames in 2019.

The separate woman who made the latest allegation worked at an overseas office of the business group.

She said she woke up in bed with two male colleagues after a night of drinking, with no recollection of having consented to sexual activity. The men later implied they had engaged in sexual activity with her.

The unnamed woman told the Guardian: “There wasn’t a person for me to speak to in HR who I knew of and could trust.”

Separately, the paper reported that a woman at the organisation was stalked by a male colleague in 2018, including being followed home and tracked online.

Brian McBride, the CBI’s president, said: “These latest allegations put to us by the Guardian are abhorrent and our heart goes out to any women who have been victims of the behaviour that is described.

“While the CBI was not previously aware of the most serious allegations, it is vital that they are thoroughly investigated now and we are liaising closely with the police to help ensure any perpetrators are brought to justice.”

On Thursday, the CBI, which claims to represent 190,000 businesses including much of the FTSE 100, said it had been “made aware of additional information relating to a report of a serious criminal offence”.