CBI president Brian McBride said the group has close ties with the police. Photo: OLI SCARFF/AFP via Getty Images
On its website, the Confederation of British Industry (CBI) spells out its raison d'être using the typical vague managerial jargon you'd expect from lobbyists: 'shaping change', 'leading change' and «acceptance of change» for UK Plc.
He does this, he says, by «discussing problems and opportunities with the government in advance, ensuring that firms of all kinds can use their voice.»
But after a mounting sexual harassment scandal that led to the firing of his boss Tony Dunker, ministers shunning the lobbying group, and a wave of prominent members leaving, the CBI now appears unable to continue from its most basic function.
FTSE 100 insurer Aviva led the charge, saying it believed the CBI «can no longer fulfill its primary function of being the representative voice of business in the UK.»
Considering this. huge membership fees from major UK companies account for about 90% of its annual income, Friday's exodus of members could bring down an organization that claims to represent 190,000 companies.
Begs the question: if the CBI collapses under the weight of these accusations, who will speak up on behalf of British business?
Anne Franke, chief executive of the Chartered Management Institute (CMI), a professional body that encourages the use of best management practices, says the CBI is now facing an «existential crisis.»
She adds: “These claims tell us that this was not a ‘one-off’ or ‘bad apple’ — there was a much bigger cultural issue here, and CBI members are questioning her ability to address what was clearly a toxic culture in the workplace.
“This shows that leadership and management fail to be aware of and respond to shocking incidents at work events, and to create an environment where people feel safe talking about bad things.” behavior at work.
«This is true. it is difficult to see how the CBI can reform without a truly independent analysis of its culture, structures and processes — and especially its management methods. see how the CBI is handling the current crisis by raising questions about who will represent private business.
CBI spin-off companies
CBI is one of the five largest lobbying groups in the UK, along with the Institute of Directors (IoD), the British Chamber of Commerce, the Federation of Small Businesses and Make UK.
Following the allegations against the CBI, Kemi Badenoch, Minister of Business and Trade, postponed a meeting with all five lobbying groups, voicing concern about the future of the private sector's engagement with the government.
The trade bodies each represent different interests — for example, the IoD is predominantly concerned with governance — but their end goals are similar: lobbying ministers to listen to the wishes of private business.
This has prompted some senior lobbyists to speculate that the five largest organizations could come together to form a single pressure group to represent UK Plc.
Simon Walker, former CEO of IoD, wrote in The Times this week that the scandal with the CBI could be a game-changer in how British business seeks to be represented.
He said: «The five business organizations have common interests, although the concerns of large and small companies, incumbents and new entrants sometimes collide.»
“There is broad agreement on most policy issues. But there is also organizational fragmentation with duplication of back office functions. Talented people are unevenly distributed and, as we noticed, there were serious shortcomings in management.
“In the medium term, there should also be doubts about the viability of five member bodies covering common business interests. Neither is financially sustainable and the consolidated umbrella group could be much better resourced once synergies are realized.”
Former CBI head Tony Dunker claims he was made a «mean guy» because of scandals that happened before how he became the head. REUTERS/Phil Noble/Photo from file
There is a precedent for the consolidation of lobbying groups. In 2017, UK Finance brought together the city's six leading trade associations into a single group that has proven to be effective.
Walker added: “Each band has its own history and traditions. Some contributors will no doubt resist reducing the number of regions and chapters with the roles and titles they grant, but local orientation and projects of personal vanity should not get in the way of rationalization.
“With important economic elections likely to take place in the next 18 months, it is unthinkable for the business community to be left without representation because politicians and government departments refuse to deal with the main body that represents employers.”
On This week, the CBI said it would release the results of an independent investigation into the allegations of sexual harassment “soon.” However, given the scale of Friday's layoffs of senior members, too much damage may already have been done.
CBI states: “Membership of the CBI will enable you to better plan with confidence using exceptional political, economic and regulatory insights. You will receive practical guidance on how to empower your business and discover opportunities to showcase your expertise.”
Big business loves to listen to ministers, but many companies, including NatWest, Aviva, Rolls-Royce and John Lewis, decided on Friday they didn't need CBI knowledge and experience and can't see it anymore. as a means of promoting their interests.
Without CBI, the door is open to a bigger and better group to take his place.
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