Retailer joins a growing list of firms leaving the CBI after a second rape claim at the lobby group emerges.
Image source, Getty ImagesA number of major firms, including John Lewis, have left the CBI after a second allegation of rape at the business lobby group emerged.
The Guardian reported that a woman who was working at one of the CBI’s overseas offices was sexually assaulted by two male colleagues.
The CBI said these latest allegations were “abhorrent” and that it had previously been unaware of the claims.
John Lewis, BMW and Virgin Media O2 have joined those quitting the CBI.
Insurers Aviva, Zurich and Phoenix Group, banking firm Natwest, credit card company Mastercard and B&Q owner Kingfisher have also cancelled their membership of the business lobbying giant – which claims to represent 190,000 firms.
The Association of British Insurers has also left, as has Energy UK, which represents energy suppliers, while numerous other companies have said they are suspending activity with the CBI following the latest claims.
The BBC understands that Shell is among the firms that have suspended activities with the CBI while investigations are ongoing.
The CBI was already facing one allegation of rape, as well as claims of sexual harassment, before the new claim emerged. Both allegations of serious sexual assaults are being investigated by the City of London Police.
The Guardian also reported on Friday an allegation of stalking by a CBI employee.
John Lewis said it made the decision to quit membership of the CBI “due to the further very serious and ongoing allegations”.
Virgin Media O2 said: “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.”
Accountancy giant PwC has suspended all activity with the CBI, saying: “With multiple horrific allegations hanging over its head, the CBI is currently unable to do its job.”
Other firms who have “paused” engagement with the CBI while investigations take place include pharmaceutical giants GSK and AstraZeneca, airports operator Heathrow, supermarket chain Asda as well as banking group Santander.
National Grid and Octopus Energy have also suspended activity with the lobby group.
The government had already announced that it was pausing its engagement with the business group.
Last week the British Insurance Brokers’ Association said it had withdrawn its membership “in light of recent reports”.
Working with police
“Our hearts go out to any women who have been victims of the behaviour described,” Brian McBride, president of the CBI, said in a statement.
“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.”
Detective Chief Superintendent Richard Waight from the City of London Police said: “Further to our investigations regarding sexual misconduct at the CBI we were passed a further serious allegation on Wednesday 19 April.”
He said that no arrests had been made and its investigations were continuing, and asked anyone with any information to get in touch.
The City of London Police was already investigating an alleged rape at a CBI summer party in 2019. This, and other claims of misconduct, emerged earlier this month.
The group has suspended three employees pending the outcome of an investigation by law firm Fox Williams.
The problems at the CBI are becoming more acute by the hour. As new allegations of rape and stalking emerge, some of the UK’s biggest companies have started to cut ties with the crisis-hit group.
The CBI is trying to move at pace. An investigation by law firm Fox Williams into numerous other alleged offences has been delivered to the group and it will communicate its findings and resulting actions early next week. The return of former CBI chief economist Rain Newton-Smith from Barclays has been fast-tracked for her to assume the vacated director-general’s office within days.
But the cracks are already appearing and many member firms have told the BBC it is not a given that they can re-engage with a body with criminal investigations pending that could take many months. Little wonder the atmosphere at the CBI’s head office is described as miserable.
Stalking allegation
The Guardian also reported that a woman at the CBI’s London office had been stalked by a male colleague in 2018.
She complained to the CBI and a finding of harassment was upheld.
However, the newspaper reports that the man continued to work at the organisation and eventually left for unrelated reasons.
In response, the CBI said: “We recognise the substance of the harassment report outlined as relating to an allegation made and investigated in January 2018.
“The finding of harassment was upheld and a sanction was imposed.”
Dame Carolyn Fairbairn was the director-general of the CBI between 2015 and 2020. The BBC has contacted her for comment.
“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,” he said.
Separately, the CBI fired director-general Tony Danker last week following claims of workplace misconduct against him which were investigated by Fox Williams.
Mr Danker took over from Dame Carolyn in late 2020.
In an interview with the BBC earlier this week, Mr Danker admitted that he had made some staff feel “very uncomfortable”, adding, “I apologise for that.”
But he said his name had become associated with claims of serious sexual assault that occurred before he joined the CBI. He is now considering legal action against the organisation.
Mr McBride said that Mr Danker had been sacked on strong legal grounds.
The CBI has appointed Rain Newton-Smith – its former chief economist – as its new director-general. Ms Newton-Smith had been at the CBI for nearly nine years before leaving last month to join Barclays.
Mr McBride said: “We are rightly undertaking an urgent root and branch review of our culture to right the wrongs where we can and to reform our workplace for everyone.”
However, some have questioned whether someone who has worked at the CBI is the right person to lead an overhaul of the organisation and its culture.
Commenting on Thursday on Ms Newton-Smith’s appointment, Ann Francke, the chief executive of the Chartered Management Institute, said: “I’m not sure there was a huge amount of openness and transparency around the process and obviously you can question whether somebody who was there is the right change agent to change the culture.”