Companies return to CBI after lobby group puts scandal in past

AstraZeneca, Unilever and GSK are among large companies that have renewed membership of the CBI, 16 months after the organisation was shaken by claims of sexual misconduct by staff.

Some of the businesses that last year suspended or terminated their engagement with the lobby group now have seats on its committees.

After the allegations were made in April 2023, an exodus of members led to a financial crisis. The group responded by cutting a third of its staff and closing overseas offices. It also overhauled its governance and finances.

Some large companies, such as Tesco and the John Lewis Partnership, are no longer members, but others have returned. A new list of the CBI’s regional councils and standing committees, which cover areas including financial services, taxation and the future of work, suggests that the organisation, which is incorporated by royal charter, is succeeding with its rebuild.

AstraZeneca, Britain’s most valuable public company, paused its engagements with the CBI while the “grave allegations” were investigated. It is now represented on the CBI president’s committee, its east of England council and the taxation committee. Unilever, which suspended its membership, is on the taxation committee, while GSK is on two committees. Others to re-engage include JLL, the property adviser, Drax, the power generation company, and Cisco, the American technology multinational.

Stephanie Hyde, the UK chief executive of JLL, which had terminated its membership, is on the chairs’ committee, the CBI’s top policy body, which is made up of those chairing its 12 regional and national councils and its sector-focused standing committees.

Last winter the 59-year-old organisation warned of “material uncertainty” over its future after a “considerable level of financial stress”. This week the CBI said: “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.”

It will host its summer reception on September 17, promising a “vibrant networking reception for business and political leaders in the heart of London”. It will publish its yearly report at its annual meeting in October.

Last year the CBI said that it had 1,100 corporate members, plus 150 trade associations. It said this meant it spoke “on behalf of 170,000 businesses”.

As part of the overhaul of CBI leadership, Rupert Soames, the FTSE boardroom veteran, succeeded Brian McBride as president and Rain Newton-Smith, a former CBI chief economist, replaced Tony Danker as director-general.