KPMG and Natwest put the CBI back in business
KPMG and Natwest have decided to resume their engagements with the Confederation of British Industry (CBI) 18 months after suspending their respective memberships.
Along with the big four audit firm and major lender, the city law firm Addleshaw Goddard has also resumed its membership.
The involvement of these corporate giants signals a renewed confidence in CBI’s restructuring efforts and attempts to restore its influence in government as the self-proclaimed ‘voice of business’.
The lobbying group was left on the verge of financial bankruptcy back in April 2023 after reported allegations of sexual harassment and assault, which were investigated by Canada police.
Following the scandal, the company vowed to reform its governance and culture with Rain Newton-Smith, its newly appointed chief executive, saying at the time: “Let me be clear, we have listened, we have acted and we will leave no stone unturned to be the best voice for business inside and out.”
All of the big four audit and accountancy firms – as well as several other household names like John Lewis and ITV – made the decision to suspend their engagements.
The exodus meant CBI had to be bailed out by Natwest and other high street banks to avoid completely going under.
As a response, the firm was radically restructured, reducing the workforce and closing down several international offices.
A number of British companies, such as Astrazeneca, Unilever and GSK had already renewed their engagement with the CBI in 2023, boosting the lobbying group as it continued its journey into recovery.
Yet Aviva, the FTSE 100 insurer which led calls for firms to cancel their memberships at the time of the scandal, continues to keep its distance and resist its return to CBI.
Talks about a potential merger with manufacturing trade body Make UK were explored in 2023, but were quickly dropped.
CBI will provide an update on its financial position in an annual meeting later in the month.
A spokesperson from the body told Morning Wire: “While it has been a difficult time for the organisation, we are absolutely confident that we will be representing the cross-economy voice of business for many years to come”