AstraZeneca, Unilever, and GSK are among the major companies that have renewed their membership with the Confederation of British Industry (CBI), over a year after the organization faced serious allegations of sexual misconduct involving its staff.
Firms that had previously suspended or ended their involvement with the CBI are now taking active roles within its committees.
Following the April 2023 allegations, the resulting member exodus plunged the CBI into a financial crisis, prompting the organization to cut a third of its staff and shut down overseas offices. The CBI also revamped its governance and financial structures.
While large companies like Tesco and the John Lewis Partnership have not rejoined, others have come back. A newly released list of the CBI’s regional councils and standing committees, covering areas such as financial services, taxation, and the future of work, indicates that the organization, incorporated by royal charter, is making progress in its rebuilding efforts.
AstraZeneca, the UK’s most valuable public company, temporarily halted its CBI engagements during the investigation of the “grave allegations.” The company now participates in the CBI president’s committee, its east of England council, and the taxation committee. Unilever, which had suspended its membership, has also joined the taxation committee, while GSK is involved in two committees. Other companies re-engaging with the CBI include JLL (the property adviser), Drax (the power generation company), and Cisco (the American technology multinational).
Stephanie Hyde, the UK CEO of JLL, who had previously terminated her company’s membership, now serves on the chairs’ committee. This group is the CBI’s top policy-making body, consisting of leaders of its 12 regional and national councils and its sector-specific standing committees.
Last winter, the 59-year-old institution highlighted “material uncertainty” regarding its future due to significant financial stress. Recently, the CBI stated: “As part of our commitment to transparency around governance, [we] have now published the membership of key committees.
“We have confidence in our financial plan. We have taken action to control costs and continue to welcome returning and new members while we work to strengthen our relationships with the new government on their behalf.”
The CBI will hold its summer reception on September 17, featuring a networking event for business and political leaders in central London. The organization plans to release its annual report at the yearly meeting in October.
Last year, the CBI reported having 1,100 corporate members and 150 trade associations, claiming to speak “on behalf of 170,000 businesses.”
As part of the CBI’s leadership overhaul, Rupert Soames, a veteran of FTSE boardrooms, has taken over as president from Brian McBride, while Rain Newton-Smith, a former CBI chief economist, replaced Tony Danker as director-general.