LONDON: Britain’s scandal-hit business lobby group, the CBI, faces a vote crucial to its survival Tuesday, with members urged to back reform under new leadership after allegations of sexual harassment by staff.
The Confederation of British Industry risks folding after claims that more than a dozen women were sexually harassed at the organization and two others had been raped.
Police have launched an investigation following the allegations reported this year by The Guardian newspaper, triggering a shake-up at the organization and an extraordinary vote on its future.
The allegations, described as “absolutely devastating” by new CBI director general Rain Newton-Smith, caused an exodus of member companies — and the launch Monday of a rival body by the British Chambers of Commerce (BCC).
Newton-Smith, who has described the situation as a “really deep and painful crisis” for the CBI, told an extraordinary general meeting Tuesday that she was “confident and determined this will be a turning point for us, the start of a new chapter, for a renewed CBI.”
She added: “We’re ready to deliver a better CBI. We just need one thing now — your vote.”
The resolution being voted on Tuesday calls on remaining member companies to put their confidence in CBI proposals to reform its “governance, culture, and purpose.”
The organization has proposed the creation of a People & Culture Committee plus an external expert-led Culture Advisory Committee.
And it has created the role of chief people officer.
At the same time it is cutting jobs as the reduction in members slashes revenue.
The scandal comes as UK businesses look for leadership during a cost-of-living crisis, with the country’s elevated inflation cooling more slowly than expected.
In a move seen as taking advantage of the crisis, the BCC has launched the rival Business Council.
“We have been talking to the nation’s largest corporates and it has become clear to us that they are looking for a different kind of representation,” said BCC director general Shevaun Haviland.
Founding partners include British energy group BP and Heathrow airport.
But Newton-Smith said Tuesday that a revamped CBI could still be a powerful driving force, with its depth of expertise and practical business insights over decades.
“Even our competitor groups have admitted they can’t match all that.”
About one dozen firms, including engineering giant Siemens, Microsoft and oil firm Esso, have signed a joint letter published in The Times newspaper backing the CBI reforms.
The signatories said that while the “CBI has recognized its failings,” they “will hold it to account on putting its plan into action.”
The letter added that “as the UK faces strong economic headwinds and anaemic growth and with a general election expected before the end of next year, it is vital that there is a credible voice representing all sectors and sizes of UK business.
“The CBI can do this.”
It comes after major companies including Unilever, UK bank NatWest and BMW Group canceled their membership.
Others have suspended their involvement — and cannot vote on Tuesday — while the UK government has distanced itself from the CBI.
Newton-Smith took over from Tony Danker, who recently departed over a separate misconduct allegation.
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Crisis-hit UK business lobby faces survival vote
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Crisis-hit UK business lobby faces survival vote
- Police have launched an investigation following the allegations reported this year by The Guardian newspaper
- The scandal comes as UK businesses look for leadership during a cost-of-living crisis, with the country's elevated inflation cooling more slowly than expected
US, Ukrainian and Russian negotiators to meet in UAE for security talks
MOSCOW: Ukrainian, US and Russian officials will hold security talks in the United Arab Emirates on Friday, the Kremlin said, following a meeting of top US negotiators with President Vladimir Putin in Moscow on a US-drafted plan to end the Ukraine war.
Diplomatic efforts to end Europe’s deadliest conflict since World War II have gained pace in recent months, though Moscow and Kyiv remain at odds over the key issue of territory in a post-war settlement.
US negotiators, led by envoy Steve Witkoff, talked with the Russian leader in Moscow into the early hours of Friday, according to a Kremlin statement.
Kremlin diplomatic adviser Yuri Ushakov told reporters their discussions had been “useful in every respect.”
Witkoff and the US team are next flying to Abu Dhabi, where talks are expected to continue.
A Russian delegation, headed by General Igor Kostyukov, director of Russia’s GRU military intelligence agency, will also head there “in the coming hours,” according to Ushakov.
“It was agreed that the first meeting of a trilateral working group on security issues will take place today in Abu Dhabi,” Ushakov added.
“We are genuinely interested in resolving (the conflict) through political and diplomatic means,” he said, but added: “Until that happens, Russia will continue to achieve its objectives... on the battlefield.”
Witkoff previously said he believed the two sides were “down to one issue,” without elaborating.
Video published by the Kremlin showed a smiling Putin shaking hands with Witkoff, US President Donald Trump’s son-in-law Jared Kushner and White House adviser Josh Gruenbaum.
The high-stakes meeting came just hours after Ukrainian President Volodymyr Zelensky said a draft deal was “nearly, nearly ready” and that he and Trump had agreed on the issue of post-war security guarantees.
He also said the UK and France had already committed to forces on the ground.
Zelensky said Ukraine’s delegation at the UAE meeting would be led by Secretary of the National Security and Defense Council, Rustem Umerov, and would include Lt. Gen. Andriy Gnatov, the chief of staff of Ukrainian armed forces.
Russia, which occupies around 20 percent of Ukraine, is pushing for full control of the country’s eastern Donbas region as part of a deal.
But Kyiv has warned that ceding ground will embolden Moscow and says it will not sign a peace deal that fails to deter Russia from launching a renewed assault.
- Europe ‘fragmented’ -
The full details of the upcoming talks in the United Arab Emirates have not been released, and it is not clear whether the Russian and Ukrainian officials will meet face-to-face.
Zelensky said these talks would last two days.
Trump repeated on Wednesday his oft-stated belief that Putin and Zelensky were close to a deal.
“I believe they’re at a point now where they can come together and get a deal done. And if they don’t, they’re stupid — that goes for both of them,” he said after delivering a speech at Davos.
Zelensky, at his address in Davos, blasted the EU’s lack of “political will” in countering Putin in a fiery address.
“Instead of becoming a truly global power, Europe remains a beautiful but fragmented kaleidoscope of small and middle powers,” he said.
Trump’s dramatic foreign policy pivots including a recent bid to take over Greenland — an autonomous Danish territory — have stirred worries in Europe about whether Washington can be trusted as a reliable security partner.
In his speech, Zelensky criticized Europe for pinning hopes on the United States defending them in case of aggression.
“Europe looks lost trying to convince the US President to change,” Zelensky said.
Russian strikes this week have left most of Kyiv without electricity, with residents of 4,000 buildings without heat in sub-zero temperatures.
Russia, which launched its Ukraine offensive in February 2022, says its strikes are aimed at energy infrastructure fueling Ukraine’s “military-industrial complex.”
Kyiv says the strikes are a war crime designed to wear down its civilian population.
Diplomatic efforts to end Europe’s deadliest conflict since World War II have gained pace in recent months, though Moscow and Kyiv remain at odds over the key issue of territory in a post-war settlement.
US negotiators, led by envoy Steve Witkoff, talked with the Russian leader in Moscow into the early hours of Friday, according to a Kremlin statement.
Kremlin diplomatic adviser Yuri Ushakov told reporters their discussions had been “useful in every respect.”
Witkoff and the US team are next flying to Abu Dhabi, where talks are expected to continue.
A Russian delegation, headed by General Igor Kostyukov, director of Russia’s GRU military intelligence agency, will also head there “in the coming hours,” according to Ushakov.
“It was agreed that the first meeting of a trilateral working group on security issues will take place today in Abu Dhabi,” Ushakov added.
“We are genuinely interested in resolving (the conflict) through political and diplomatic means,” he said, but added: “Until that happens, Russia will continue to achieve its objectives... on the battlefield.”
Witkoff previously said he believed the two sides were “down to one issue,” without elaborating.
Video published by the Kremlin showed a smiling Putin shaking hands with Witkoff, US President Donald Trump’s son-in-law Jared Kushner and White House adviser Josh Gruenbaum.
The high-stakes meeting came just hours after Ukrainian President Volodymyr Zelensky said a draft deal was “nearly, nearly ready” and that he and Trump had agreed on the issue of post-war security guarantees.
He also said the UK and France had already committed to forces on the ground.
Zelensky said Ukraine’s delegation at the UAE meeting would be led by Secretary of the National Security and Defense Council, Rustem Umerov, and would include Lt. Gen. Andriy Gnatov, the chief of staff of Ukrainian armed forces.
Russia, which occupies around 20 percent of Ukraine, is pushing for full control of the country’s eastern Donbas region as part of a deal.
But Kyiv has warned that ceding ground will embolden Moscow and says it will not sign a peace deal that fails to deter Russia from launching a renewed assault.
- Europe ‘fragmented’ -
The full details of the upcoming talks in the United Arab Emirates have not been released, and it is not clear whether the Russian and Ukrainian officials will meet face-to-face.
Zelensky said these talks would last two days.
Trump repeated on Wednesday his oft-stated belief that Putin and Zelensky were close to a deal.
“I believe they’re at a point now where they can come together and get a deal done. And if they don’t, they’re stupid — that goes for both of them,” he said after delivering a speech at Davos.
Zelensky, at his address in Davos, blasted the EU’s lack of “political will” in countering Putin in a fiery address.
“Instead of becoming a truly global power, Europe remains a beautiful but fragmented kaleidoscope of small and middle powers,” he said.
Trump’s dramatic foreign policy pivots including a recent bid to take over Greenland — an autonomous Danish territory — have stirred worries in Europe about whether Washington can be trusted as a reliable security partner.
In his speech, Zelensky criticized Europe for pinning hopes on the United States defending them in case of aggression.
“Europe looks lost trying to convince the US President to change,” Zelensky said.
Russian strikes this week have left most of Kyiv without electricity, with residents of 4,000 buildings without heat in sub-zero temperatures.
Russia, which launched its Ukraine offensive in February 2022, says its strikes are aimed at energy infrastructure fueling Ukraine’s “military-industrial complex.”
Kyiv says the strikes are a war crime designed to wear down its civilian population.
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