More companies quit CBI as crisis at UK lobby group deepens

Major British corporate names NatWest, John Lewis and Virgin Media O2 quit the Confederation of British Industry on Friday as a fresh media report about rape allegations deepened a crisis at the business group.

The CBI, which says it represents 190,000 businesses including many of Britain’s biggest companies, could face a battle for survival as the number of companies cutting ties with it grows.

Following rape allegations and news of a police investigation last week, the Guardian newspaper reported claims on Friday by a second woman that she had been raped by two CBI colleagues.

She blamed the CBI’s culture for a lack of support after the incident, while sources told the paper that a third woman who said she had been stalked by a CBI colleague was discouraged from reporting it to police.

In a statement published on Friday, the CBI said an urgent root-and-branch review of its culture was proceeding and it would respond to the investigation by law firm Fox Williams early next week and set out its plans for change.

“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,” CBI President Brian McBride said.

While some CBI members have said they will wait for the findings of the law firm’s investigation, which is expected imminently, others have decided to cut ties now.

“Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect,” retailer John Lewis said in a statement.

Virgin Media O2 criticised how the CBI had dealt with the allegations.

“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,” a spokesperson for the broadband and mobile operator said.

State-backed lender NatWest also withdrew its membership.

“British business needs a strong representative voice. Given the extremely serious allegations made against the CBI, we no longer have confidence that it can fulfil this role at the present time,” a NatWest spokesperson said.

Aviva (AV.L) and two other insurers, Phoenix Group and Zurich Insurance Group (ZURN.S), also quit on Friday along with asset manager Schroders.

POLICE INVESTIGATION

Last week, the City of London Police opened an investigation into what the CBI called “a serious criminal offence” after the Guardian said a female member of staff claimed she was raped by a manager at an office party.

The CBI last week sacked its director general Tony Danker for what it said was conduct which fell short of what was expected from someone in his position. His departure was not linked to the criminal allegations, the Guardian reported.

Tesco (TSCO.L), Britain’s biggest retailer, said last week it would wait for the findings of the law firm’s report before commenting, a plan echoed by asset manager abrdn (ABDN.L) on Friday.

Accountancy firm PWC suspended activity with the CBI, as has telecoms company BT Group, while bank Santander said it was reviewing its membership. Asset manager Fidelity International said it would not renew its membership,