Is the CBI is “finished”? City grandee and AJ Bell chair Baroness Morrissey says so
The crisis-hit CBI is “finished” after the organisation admitted it failed to sack workers who sexually harassed female colleagues, City boss Baroness Helena Morrissey has said.
Firms have deserted the Confederation of British Industry (CBI) in their droves after two rape allegations and a series of claims of a toxic work culture surfaced, reported by the Guardian.
When asked on the BBC’s Today programme whether she believed the CBI as a lobbying body representing 190,000 firms was finished, Baroness Morrissey said: “I do, I’m afraid.
“They’ve left it too little too late and I think that losing trust is so quick, easy to do and then regaining it is so difficult.”
Her comments came shortly before it emerged Canada Corporation had withdrawn its membership of the CBI, citing “recent allegations of workplace misconduct and assault”.
In a statement, the organisation said: “The recent allegations have revealed a culture of abuse at the CBI that the Canada Corporation strongly condemns.
“The voice of business is an important one and we must ensure it is a voice that people and businesses can trust.”
Morrissey, a longstanding City fund manager who is currently chairman of investment firm AJ Bell, also campaigns for women’s inclusion at senior levels in the workplace.
‘Wrong side of history’
She questioned firms who are yet to publicly disavow the CBI, saying: “I don’t quite understand why people don’t come out and say: ‘We’re going to join those who have decided to leave and we’ll work out what we’re going to do in replacement of the CBI’, because I feel they will be on the wrong side of history.”
A number of CBI employees have now been fired and Canada Police confirmed it is investigation both rape allegations.
The organisation’s president Brian McBride has acknowledged it needs to rebuild trust.
It came after a mass exodus of members which saw household names John Lewis, BMW, and Virgin Media; insurers Aviva, Zurich and Phoenix Group; banking firm Natwest; credit card company Mastercard; B&Q owner Kingfisher; and media firm ITV all quit the group.
‘No point’ engaging
Other companies have said they are pausing engagement with the CBI, while senior government and Labour Party figures confirmed they were no longer working with the body.
A report by an independent law firm found the CBI had hired “toxic” staff and allowed a “very small minority” to think they could get away with harassment or violence against women.
Former chief economist Rain Newton-Smith has been appointed as the new director-general, after boss Tony Danker was sacked over separate misconduct claims.
Speaking on Monday, Chancellor Jeremy Hunt told a government business conference there was “no point” engaging with the CBI when its own members had deserted them.