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- By Dearbail Jordan
- Business reporter, BBC News
Some firms 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 assaulted by two male colleagues.
The CBI said these latest allegations were “abhorrent” and that it was previously unaware of the claims.
Insurers Aviva and Phoenix Group said they had ended their membership of the lobbying giant.
The CBI, which claims to speak for 190,000 businesses, has been engulfed in scandal following a previous allegation of rape as well as claims of sexual harassment.
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 on Friday.
“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 City of London police is 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 CBI has received the report from Fox Williams and will respond to it early next week.
The BBC has contacted the City of London police in connection with the second alleged rape.
The government had already announced that it was “pausing” its engagement with the CBI.
Aviva said: “In light of the very serious allegations made, and the CBI’s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK.
“We have therefore regrettably terminated our membership with immediate effect.”
Phoenix Group said: “Further to the allegations reported this morning, we have taken the decision to resign our membership of the CBI with immediate effect.”
Meanwhile, supermarket group Asda said: “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.”
Last week the British Insurance Brokers’ Association said it had withdrawn its membership “in light of recent reports”.
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.
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 but is now returning to the business lobby group, and is expected to take the helm “within days”.
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.”
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