On a cold Wednesday morning at the Central London Convention Center last month, Tony Dunker, head of the Confederation of British Industry (CBI) said business leaders that they must adhere to progressive values in order to remain competitive.
The former head of the Guardian Media Group urged those assembled at 8 Northumberland Avenue — a stone's throw from the halls of power in Westminster — to adopt «proactive diversity and inclusion strategies» if they want to attract young talent.
The CBI Future of Work conference was packed with high-profile speakers from business and politics, including Education Secretary Gillian Keegan, Labor Deputy Leader Angela Rayner and Ian Muldowney, COO of BAE Systems.
Dunker said, “More than ever, it's a competition for values: the values the company stands for and the value of the work it promotes. Much of this is driven by the different generations of people currently working and their expectations of how businesses should contribute to their own lives and society as a whole.”
Five weeks later, Dunker's eulogy of progressive values now threatens to expose the thread of hypocrisy running through the CBI, a group that bills itself as Britain's leading lobbying group for big business.
During this time, Dunker stepped aside amid an investigation into allegations that he harassed a female co-worker; while ministers and the Governor of the Bank of England have suspended engagement with the CBI following separate allegations against other colleagues of serious sexual harassment and widespread misconduct.
CBI boss Tony Dunker (left) stepped aside as the investigation proceeded. Photo: Rory Arnold/10 Downing Street
As some members reconsider their ties to the CBI, the lobbying group is facing an existential crisis as it awaits the verdict of an independent investigation by the city's law firm Fox Williams. This begs a simple question: can the CBI survive?
The most serious allegation, first reported by the Guardian, was that of a female employee that she was raped by a senior colleague at a CBI summer party on a boat in 2019.
She reported the incident to a manager. but said she felt «disappointed» when her superiors urged her to seek advice rather than take further action. She subsequently did not report the incident to the police.
The CBI said it did not find any evidence or records of the alleged rape, despite asking Fox Williams to include the allegations in its investigation.
At the same boat party, another manager was accused of attempted sexual assault, which the CBI was investigating. The alleged perpetrator in question has left the organization. The CBI last week declined to say whether the case had been taken to police.
One former employee told The Telegraph that the boat party was «notorious» and was aware of a colleague being sexually harassed on the dance floor at the event. She adds that the organization had a block culture of schoolchildren.
The Fox Williams investigation was expanded to include new allegations made last week and the complainants also described a «toxic culture» of «uncontrolled misogyny» within the organization.
A former employee says she directly experiences the culture and suffered at the hands of a «rather toxic» male co-worker who was popular inside and repeatedly made offensive comments about her. She says, “One day at dinner he said to me, ‘Everyone should be bullied at least once in their life.
The campaign of persecution has paid off. “I felt insecure, alert for the next ambush and helpless,” she says.
“There was nothing specific to report to HR, and therefore there was little protection from his aggression. I know it's nothing compared to being raped, but it had a negative effect on me, my ability to perform well in CBI, and my career in general.
“This unwanted attention also played a decisive role in my terminating my work contract early and not wanting to return to the corporate world.”
The government has «suspended» interaction with the CBI. Photo: Jacob King/PA
The CBI said last week that its board expects to receive preliminary findings and recommended actions on the first phase of the Fox Williams investigation «shortly after Easter.»
Before the investigation was expanded to include new allegations against other other colleagues, the law firm was initially brought in to look into alleged wrongdoing by Danker.
This complaint concerns an employee who claims that Dunker sent her unsolicited messages for over a year and also made unsolicited verbal remarks. It is also assumed that he viewed the employees' personal Instagram profiles.
The former employee who spoke to The Telegraph says she had little personal contact with Dunker, who joined the CBI at the end. 2020, but he always came across as «friendly, energetic and joking».
Another former employee says she had firsthand experience of Dunker texting her out of the blue.
She says: “After meeting shortly after he joined, he texted me directly on the Teams chat, being very friendly. and working with directors, which I thought was nice and something you don't often see in big organizations like CBI.»
When the allegations first surfaced, Dunker apologized for causing «insult or distress to any colleague», stating that it was «completely unintentional».
However, for an organization that relies on companies paying it fees to lobby politicians and regulators on their behalf, the scandal threatens to undermine CBI's business model and raises questions about the future of private sector engagement with ministers. In 2021, the organization received £22.2m from membership fees, nearly 90% of its total income.
Engineering companies Rolls-Royce, EY and Marks & Last week, Spencer all made public statements expressing concern about the allegations, saying they had expressed their views directly to the CBI.
Many executives say privately that they will wait for Fox Williams to present its findings before deciding what action to take.
The CEO of the London-based financial services company says: «We are puzzled by the level of allegations and will await the outcome of the investigation before considering further action.»
Meanwhile, an insider from the FTSE 100 insurance company, which has worked closely with the CBI, says: “We are closely following the investigation and any decision we make will be based on its findings. We have also raised our concerns directly with the CBI.”
An ex-employee adds: “Reputation will be damaged. I have never seen the government take such drastic action so quickly.»
This is not the first time the members have attempted to leave the body. Following the Brexit vote, the CBI was criticized by Brexit supporters for being overly identified with the Remain affair, leading to high-profile layoffs including Lord Bamford's JCB who paid £30,000 a year in fees.
< p> Since the government currently refuses to engage with the organization, its promise to members that it «will actively speak to the government about challenges and opportunities, ensuring that firms of all kinds can use their voice» is clearly impossible to keep.
In its latest annual report, the CBI points out a number of risks to the viability of the organization. One of those risks: «[A] lack of diversity [which] harms the CBI brand and limits development.»
CBI will certainly be fighting to rebuild its brand once Fox Williams releases its findings.
A CBI spokesperson said: “It is deeply regrettable and completely unacceptable that any employee feels unwell or unsafe. The CBI has taken and continues to take all matters of conduct in the workplace with the utmost seriousness. We encourage those who wish to raise issues of this nature to report them to an independent investigation.”
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