Nearly 70% of eligible CBI members boycotted a vote of confidence proposed by CBI head Rein Newton-Smith. Photo: Elliot Franks
Less than a third of members of the Confederation of British Industry supported the preservation of the lobbying group, the bosses acknowledged.
Raine Newton-Smith, the organization's new CEO, told MPs on Tuesday that about 1,200 members were eligible to vote for plans to rescue the business and reform it at a meeting last week. However, only 371 votes were cast.
While 345 voted in favor, recent membership figures cast doubt on the groups' claims to represent British business.
Hundreds of major companies, including Tesco and Rolls-Royce, decided to boycott the meeting, while the likes of John Lewis, Aviva and NatWest quit following a devastating sexual harassment scandal.
Companies were asked to decide whether they trust CBI last week. Officials warned ahead of the vote that the organization would likely go bankrupt if its reform plans were not supported.
CBI said it received a “strong mandate” from its members, or “93% support”.
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However, MPs questioned whether the group could still credibly claim to be the “voice of business” at hearings in the case. House of Commons Committee on Business and Commerce.
Ms. Newton Smith declined to say how many members quit as a result of the scandal.
Companies that left the CBI
On the same exchange, Ms. Newton -Smith said the CBI “lost a few members” only to be interrupted by Anthony Mangnall, a Tory member of the commission.
He said: “Sorry to interrupt, but this is a lot of enterprises. It's one of the leading industries in this country, it's one of the leading supermarkets…when we're at the point where we're worried about food prices, those supermarkets are gone,”
He later added. : “You tell us you have 1200 members. Well, I don't know what that means in terms of what happened in previous years and what the impact of this scandal is.
Ms. Newton-Smith told MPs: “I will not name the number of members who we lost.”
“What I really think is really important is to talk about the members that we represent now. And 1,200 businesses across the UK is a really strong mandate.
“I think that's what I think politicians on both sides of the House of Representatives should listen to.”
She told the CBI. had “economic power” and “great experience”, adding: “We have been able to become the voice of business, and I would tell politicians that we have a huge number of companies behind us.”
Her remarks were made in connection with the fact that that the government and the Labor Party are still freezing the CBI ahead of a possible general election next year.
Politicians and businesses have suspended engagement with the CBI following reports of sexual harassment. in the organization, including two alleged rapes.
Some major companies including Heathrow, Drax, IHG Hotels & Resorts and BP have joined a rival “business council” set up by the British Chamber of Commerce.
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