Wind down CBI right now, says RUTH SUNDERLAND

Wind down CBI right now: The world has changed and it is not only its attitudes to women that appear outmoded, says RUTH SUNDERLAND

  • Prospectus CBI has issued is a depressing document riddled with corporate guff
  • To young tech entrepreneurs, CBI must look hopelessly stuffy and outdated
  • It would be best not to prolong the agony

Even if the CBI wins its confidence vote tomorrow, its future is cloudy. It’s so bad that even ITV – no stranger to scandals itself – has decided that it no longer wants to be a member.

The lobby group is laying off a large number of staff to slash its salary bill by a third, which is not exactly a vote of confidence from its leadership.

The prospectus it has just issued, meant to convince members to rally, is a depressing document riddled with corporate guff.

Responses to the sex and drugs scandals include ‘the creation of a new People & Culture committee and an external expert-led Culture Advisory Committee’. Is it just me, or does that sound a little bit Maoist?

The media are not being admitted to the extraordinary general meeting, which is poor form and again shows a lack of confidence.

Under pressure: The prospectus the CBI has just issued, meant to convince members to rally, is a depressing document riddled with corporate guff

Most firms view it as good practice to open the doors to reporters at such events.

One question members might ask, however, is how much of their money the CBI has given to Principia Advisory, which calls itself ‘the leading consultancy for building ethical organisations’, for its insights.

These included the profound observation that blanket descriptions of CBI culture as misogynistic and toxic were not ‘useful’.

No doubt the debacle has been good business for Principia’s founder, Dr David Rodin, who is British but lives in Switzerland, where the controlling company is incorporated.

But what does it say when the UK’s premier business organisation needs to hire consultants on ethics? Is the concept of treating colleagues with respect and behaving with integrity really so hard to fathom?

Members might also inquire how much the panic-stricken CBI has spent on the Fox Williams report – and why it has not been published in full – along with the surveys, ‘listening exercises’, fees to lawyers and other advisers it has racked up.

Despite all this activity, there is a lack of transparency. There is no information about actions taken against individuals over their alleged conduct, other than ousted former director-general Tony Danker and ex-chairman John Allan, neither of whom were accused of the most serious wrongdoing.

It seems impossible for CBI members to cast an informed vote when so many important issues remain unresolved.

Police investigations may take months and there may be lawsuits. Danker, who is clearly furious, has been rumbling ominously in the background. Allan also feels aggrieved at his premature departure from roles at Tesco and Barratt in the fallout.

It is hard to imagine who would be keen to replace outgoing president Brian McBride. It looks like a potential poisoned chalice.

If the CBI loses the vote, or wins narrowly, there seems little option other than for it to wind itself down. Even supposing it wins a mandate to continue – and it won backing from firms such as Siemens, Microsoft and Esso at the weekend – there are questions over whether it can attract new members it needs if it is to have a long-term future.

Imagine the scandals had never happened. The CBI would still be facing questions about its relevance. A FTSE 100 boss I spoke to this week says he never considered joining, as he considered membership of no use to him. To a young tech entrepreneur, it must look hopelessly stuffy and outdated.

It was founded 60 years ago when business meant manufacturing and a strong force was needed against a powerful trades union movement. The world has changed and it is not only its attitudes to women that appear outmoded. It would be best not to prolong the agony.



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