John Lewis Partnership quits CBI
Retail chain the John Lewis Partnership has now become the latest company to quit the CBI today, after the latest allegations of misconduct by managers at the group.
A company spokesperson for the group, which includes Waitrose supermarkets and John Lewis department stores, said:
“Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect,”
New from @KatieLinsell – John Lewis Partnership has now cancelled its membership with immediate effect. “Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect.”
— Sabah Meddings (@sabahmeddings) April 21, 2023
Key events
British Land, one of the UK’s biggest property developers, has also paused engagement with the CBI.
Major UK drugmaker GSK and property developer British Land say they have paused engagement with the CBI #cbi
— Julia Kollewe (@JuliaKollewe) April 21, 2023
Julia Kollewe
Britain’s other big drugmaker, GSK, has paused its work with the CBI, as AstraZeneca also announced earlier today.
GSK took the move pending the outcome of the independent investigation into alleged serious misconduct and sexual harassment at the organisation, and the CBI taking appropriate (robust) action.
GSK, which is run by Emma Walmsley, one of few female FTSE 100 chief executives, says it remains a member of the CBI but has a zero tolerance approach to any form of sexual harassment in the workplace.
John Lewis Partnership quits CBI
Retail chain the John Lewis Partnership has now become the latest company to quit the CBI today, after the latest allegations of misconduct by managers at the group.
A company spokesperson for the group, which includes Waitrose supermarkets and John Lewis department stores, said:
“Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect,”
New from @KatieLinsell – John Lewis Partnership has now cancelled its membership with immediate effect. “Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect.”
— Sabah Meddings (@sabahmeddings) April 21, 2023
Kalyeena Makortoff
A source with knowledge of the matter said Barclays “is not proactively engaging” with the CBI as the lobby group’s investigation continues.
It is understood that the bank has not yet made a decision on its membership.
AstraZeneca pauses work with CBI
Julia Kollewe
Pharmaceuticals giant AstraZeneca has paused its work with the CBI, following the ‘grave’ allegations of misconduct at the business lobby group.
An AstraZeneca spokesperson said:
“Following these grave allegations, we have decided to pause our engagements with the CBI while these are investigated.”
Virgin Media O2 ending CBI membership
Telecommunications company Virgin Media O2 is quitting the CBI.
A Virgin Media O2 spokesperson says:
“While we respect the ongoing investigations taking place, these disturbing allegations and the way the situation has been handled is not representative of business in Britain.
We have therefore informed the CBI that we are ending our membership.”
PwC suspends activity with CBI, following ‘multiple horrific allegations’
PwC, one of the Big Four accountancy firms, has suspended its activity with the CBI.
It says that the “multiple horrific allegations” hanging over the CBI means the group is unable to do its job at present.
A PwC spokesperson explains:
We see value in an organisation that represents UK business, and the issues that matter most to business as a whole.
That organisation needs to be a trusted voice, and have the membership necessary to be representative. With multiple horrific allegations hanging over its head, the CBI is currently unable to do its job. We have suspended all activity with the CBI.
Jillian Ambrose
The Guardian understands that Shell suspended all activity with the CBI at the beginning of last week while the business group’s review takes place.
A spokesman for Shell declined to comment.
Association of British Insurers quits CBI
The departures from the CBI continue, with the Association of British Insurers, ending its membership with immediate effect.
The ABI is the “trade association for insurance and the long term savings market”, with over 200 members across the UK industry.
An ABI spokesperson says:
“It has become untenable to retain our membership in light of further serious allegations and we have informed the CBI of our decision to leave with immediate effect.”
And after many of Association of British Insurers (Aviva, Zurich, Vitality) said they were quitting CBI after serious allegations, the ABI is also terminating membership. Saying it is “untenable” pic.twitter.com/L9GMP60mmv
— Ashley Armstrong (@AArmstrong_says) April 21, 2023
*NEW* @nationalgrid is the latest CBI member to pause engagement. A spokesman said: ‘’We are very concerned about all the allegations. We have suspended all engagement with the CBI and are reviewing our membership.”
— Isabella Fish (@fish_bella) April 21, 2023
New on CBI: I’m told Lloyds Banking Group has also paused all engagement with the CBI in light of the new rape allegations, joining Asda and Shell’s position.
I expect it will be like dominoes this afternoon.
— Ashley Armstrong (@AArmstrong_says) April 21, 2023
Zurich UK, the insurance group, is terminating its membership of CBI with immediate effect, Reuters reports.
A spokesperson for Zurich UK says the company is “deeply concerned” about allegations made about the CBI.
💥Insurer Zurich UK is the latest company to quit the CBI. A spokesman says: “We are deeply concerned about the allegations made about the CBI and have decided to terminate our membership with immediate effect.”
— Ben Martin (@Benjaminwmartin) April 21, 2023
Asset manager Abrdn has said it is waiting for the findings of the review into the CBI.
An Abrdn spokesperson said (via Reuters):
“Like other members, we await the outcome of the current review, and look forward to understanding the CBI’s plans for dealing with the issues that have emerged.”
The CBI announced a “root-and-branch review” of its culture, governance and processes last week, following the allegations of misconduct by senior staff published by the Guardian this month.
It also dismissed former director-general Tony Danker with immediate effect, after an investigation into complaints of workplace misconduct. None of those new claims, reported on 3 April, relate to Danker, who has apologised for causing any unintentional offence.
Danker told the BBC he had been made a “fall guy” for problems at the CBI, but its president, Brian McBride, accused Danker of being “selective” in his account of his departure.
We flagged earlier that Abrdn is reported to be weighing up whether to quit the CBI.
Vitality, a smaller UK health insurer, also quit the CBI, the Financial Times reports.
Neville Koopowitz, Vitality chief executive, said:
“We don’t believe that they have the credibility to represent business at this point,”
Chip intellectual property designer Imagination Technologies has also gone, with sources telling the FT the recent allegations “tipped the balance” in favour of quitting, but the original driver had been a lack of value for money.
As flagged earlier, supermarket chain Asda has “decided to pause” all engagement with the CBI while investigations take place.
More dominoes falling among CBI. After Aviva…Phoenix insurance, Vitality, People’s Partnership pensions all quitting; others (Shell, Asda) suspending engagement…. Via @ft https://t.co/1Hzh3cfDDf
— Peter Foster (@pmdfoster) April 21, 2023
British insurer Phoenix quits CBI
Newsflash: Phoenix Group, the FTSE 100 life insurer, has cancelled its membership of the CBI with immediate effect.
Phoenix says it took the decision following this morning’s report in the Guardian that a second woman has claimed she was the victim of rape at the CBI.
A spokesperson for Phoenix Group said:
“Further to the additional allegations reported this morning, we have taken the decision to resign our membership of the CBI with immediate effect,”
New: Phoenix Group – UK’s biggest savings and retirement business – is cancelling its CBI membership.
PR says: “Further to the allegations reported this morning, we have taken the decision to resign our membership of the CBI with immediate effect.”— Ashley Armstrong (@AArmstrong_says) April 21, 2023
Phoenix Group’s HR director Sara Thompson recently spoke at CBI’s last conference about the future of work.
— Ashley Armstrong (@AArmstrong_says) April 21, 2023
Phoenix Group is the UK’s largest long-term savings and retirement business, with brands include Standard Life, Phoenix Life and SunLife.
*NEW *Asda pauses its engagement with the CBI via @fish_bella : “We are aware that further allegations have been made against the CBI and have decided to pause our engagement with them while these are investigated.”
— Katie Prescott (@kprescott) April 21, 2023
Aviva is one of a handful of London’s blue-chip companies to be run by a woman.
Amanda Blanc has faced some appalling sexism since taking control of Aviva in July 2020. At last year’s Annual General Meeting, Blanc was told she was “not the man for the job” and that she should be “wearing trousers”.
Earlier this week, Aviva’s chairman warned he will not tolerate disrespectful behaviour from shareholders at this year’s AGM.
Blanc is Aviva’s first female chief executive, and is well known for being a pioneer in male-dominated sectors, including chairing Welsh rugby’s Professional Rugby Board.
Helen Cahill of The Times says we shouldn’t be surprised that Blanc, one of the most high-profile women in the City, is taking her firm out of the CBI.
It’s perhaps no surprise that Aviva’s Amanda Blanc, one of the most high-profile women in the City, is leading the CBI exodus this morning.
Sky News reports abrdn also considering a move. https://t.co/4KGRh4FE68— Helen Cahill (@HelCahill) April 21, 2023
But will others follow? Aviva’s departure will surely force other major CBI members to consider their own membership….
And so it begins… Now that one big plc has left, the question will become: ‘if Aviva thinks what’s happened is unacceptable, why are you ok with it?’ https://t.co/YoeR1mZoZR
— Ben Cope (@BenHCope) April 21, 2023
Aviva isn’t the first CBI member to quit, following the allegations of sexual misconduct by senior staff at the UK’s leading business lobby organisation.
It emerged early this week that the British Insurance Brokers’ Association has cancelled its CBI membership.
BIBA, which represents 1,800 insurance brokers and intermediaries, quit after allegations about senior staff at the CBI were reported by the Guardian, earlier this month.
The association – which confirmed it had left but would not comment further – was understood to have told the CBI it was leaving last week, according to This Is Money.
The loss of FTSE 100 insurer Aviva calls into question whether the Confederation of British Industry can survive the latest allegations of misconduct at the lobby group, the Financial Times says.
Aviva’s departure was announced just hours after the Guardian reported that a woman has alleged that she was raped by two male colleagues when she worked at the CBI, the second to claim she was the victim of rape at the organisation.
CBI president Brian McBride said in a statement:
“These latest allegations put to us by the Guardian are abhorrent and our heart goes out to any women who have been victims of the behaviour that is described.
While the CBI was not previously aware of the most serious allegations, it is vital that they are thoroughly investigated now and we are liaising closely with the police to help ensure any perpetrators are brought to justice.”
The government suspended engagement with the group earlier this month while the law firm Fox Williams conducts an investigation.
McBride says the CBI is expecting a further report from Fox Williams later today, adding:
The board will communicate its response to this and the other steps we are taking to bring about the wider change that is needed early next week.”
