Scandal-hit CBI admits hiring ‘culturally toxic people’ and not firing them despite sexual harassment complaints

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(FILES) In this file photo taken on November 21, 2022 Confederation of Business Industry (CBI) director general Tony Danker addresses the annual CBI conference at the Vox Conference Centre in Birmingham. - Britain's main business lobby group, the CBI, has sacked Director General Tony Danker following a probe into allegations of sexual misconduct, it announced on April 11, 2023. "Tony Danker is dismissed with immediate effect following the independent investigation into specific complaints of workplace misconduct against him," the Confederation of British Industry said in a statement. (Photo by Oli SCARFF / AFP) (Photo by OLI SCARFF/AFP via Getty Images)

THE UK’s biggest business group today admitted hiring “culturally toxic people” and not firing them despite sexual harassment complaints.

The scandal-hit CBI said it was now co-operating with a police investigation into two separate rape allegations that have plunged the lobby group into crisis.

The CBI has already ousted Tony Danker as director general and said he was suspended after further allegations from members of staff were made to the board

CBI president Brian McBride said in a letter to members that an independent investigation found the organisation failed to fire sexual harassment offenders

It also revealed there had been a third sexual misconduct complaint raised by an employee to the board that had not been covered by an exposé in The Guardian newspaper.

CBI president Brian McBride said in a letter to members that an independent investigation by law firm Fox Williams showed the organisation had “tried to find resolution in sexual harassment cases when we should have removed those offenders from our business”.

He called it a “most grievous error”, which he said had led to female staff being reluctant to make complaints.

Mr McBride added that it also let a “small minority of staff with regressive — and in some cases abhorrent — attitudes towards their female colleagues feel more assured in their behaviour”.

The CBI has already ousted Tony Danker as director general and said he was suspended after further allegations from members of staff were made to the board.

Mr Danker has said that he was made the “fall guy” and falsely drawn into the more serious allegations.

Mr McBride has said Mr Danker’s version was “selective”.

Last week, more than 60 companies deserted the organisation, which relies on business membership fees to survive.

Mr McBride issued a plea that it had been “one of the most effective industrial representation bodies in the world” but admitted he did not know whether it was possible for the organisation to regain the trust of businesses.

The probe by Fox Williams found that staff complaints about inappropriate behaviour were not escalated or discussed at board level when they should have been.

Mr McBride defended asking Rain Newton-Smith, former chief economist for nine years, to return to lead the business “because the employees of the CBI deeply trust and respect her”.

Critics have said the organisation should have run a thorough process and brought in an outsider as Ms Newton-Smith was in a senior position at the time of the allegations.

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