Scandal-hit CBI to recruit new president

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Sharecast News | 31 May, 2023

The Confederation of British Industry is to appoint a new president, it was confirmed on Wednesday, as the scandal-hit lobby group looks to overhaul its governance ahead of a crucial members vote.

In a prospectus published on Wednesday, current incumbent Brian McBride said he would "immediately" start the search for his successor. The process is expected to take the best part of the year, with the transition set to begin "no earlier than January 2024", he noted.

The CBI has been rocked by revelations of a toxic workplace, including sexual harassment and bullying, as well as two allegations of rape, which are now being investigated by the police.

Director general Tony Danker was sacked, and more than 65 firms have cancelled or suspended their membership, including John Lewis Partnership and insurer Aviva. The government has also paused all dealings with the group.

In response, the CBI - which has mothballed all events - brought in law firm Fox Williams to review the allegations and its internal culture. The firm made 34 recommendations, all of which the CBI has accepted.

It is now facing a confidence vote by members, with results due to be published shortly after an extraordinary general meeting on 6 June. It is understood that journalists will not be allowed to attend the meeting.

McBride, who was appointed president in June 2022, said: "While striving to represent and support our members to the highest standards, we simultaneously underestimated the daily effort required to maintain a great culture and the operational excellence of a growth CBI.

"The consequences of that failure you already know. We share a deep sense of responsibility to put things right."

The CBI also noted in the prospectus that Principia Advisory, a consultancy hired to review its organisation culture, did not find blanket descriptions of the group as toxic or misogynistic "accurate or useful".

But it did find that the CBI had not done enough to build a "strong, values-based organisation culture, and has under-prioritised people management skills".

As well starting the search for a new president, the CBI told members it would focus on three core commitments: to "build a leadership team reflecting the organisation’s co-created values"; to embed all of Fox Williams’s and Principia’s recommendations; and to establish an external culture advisory committee to "steer and challenge" culture renewal.

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