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Gloucestershire Business News

Scandal-hit CBI wins survival vote

The CBI has won a key confidence vote over its future after members overwhelmingly backed the group yesterday following a series of scandals.

The CBI said that 93% of the 371 members who voted backed its plans to reform the organisation.

Rain Newton-Smith, its new director general, said: "After an incredibly tough period, I'm deeply grateful for the faith shown in us by our members. 

"We've made real progress in implementing the top-to-bottom programme of change promised by the board and, while there remains work to do, today's result represents an important milestone on that journey.

"Even an organisation as established as the CBI is only as strong as its members. That support is something we have never taken for granted. 

"We will work tirelessly to repay the faith shown in us and are committed to living the values and changes we have proposed.

"Let me be clear, we have listened, we have acted, and we will leave no stone unturned to be the best voice for business inside and out.

"We also heard another important message from members. That they want us to bring our breadth and depth of expertise, as well as our unique convening power, to bear on the economic challenges of the day."

Despite the vote, some companies such as engineering giant Rolls-Royce said its membership remains suspended.

The CBI held the vote after The Guardian published allegations of sexual misconduct at the group.

The CBI responded by setting out a number of reforms and asked members to take part in a confidence vote on its future.

The BBC said it is not clear how much of the organisation's entire membership the 371 companies and trade associations who voted represents.

The CBI says on its website that it has 700 member organisations but following the misconduct allegations, some firms and associations have left the group.

Ms Newton-Smith said the 371 who voted was a "huge proportion of our membership".

One of the CBI's main functions is to speak with the government on behalf of businesses.

The government paused any activity with the CBI following allegations of sexual misconduct at the group.

The CBI recently said it would have to make job cuts in order to slash its wage bill by a third. In its most recent public accounts, for 2021, the CBI reported income of £25m, of which £22m came from membership fees.

The CBI employs about 250 people in the UK and has offices overseas.

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