A majority of 93% of member companies want to give a crisis-ridden association a second chance.
(Photo: Reuters)
London The Confederation of British Industry (CBI), the British industry association, can continue to exist for the time being. At the Extraordinary General Meeting, 93 per cent of the represented companies voted in favor of reforms proposed by new CBI boss Rain Newton-Smith. Seven percent voted against renewal. A total of 371 votes were cast.
“After an extremely difficult period, I am very grateful to our members for their confidence in us,” said the 47-year-old association leader, who has only been in office for a month. Even though there is still a lot of work to be done, today’s result is an important milestone. Ann Frank, chair of the Chartered Institute of Management in London, on the other hand, is skeptical: “The CBI has given itself much-needed breathing room, but the daunting challenge of culture change still lies ahead.”
The trade association has been in an existential crisis for months. Former CBI chief Tony Danker was summarily fired following allegations of sexual harassment. In April, independent reports of employee drug abuse, bullying and rape led to the withdrawal of a large number of companies from what was then the most important lobby group in British industry. The association subsequently ceased all activities.
Newton-Smith’s reforms were put to a vote at Tuesday’s extraordinary general meeting without the media. At least 50% of remaining members must agree to proposed changes in leadership, culture and job changes.
Each company, regardless of size, has only one vote. Siemens UK and Microsoft are said to have struggled to get enough votes for the renewal. According to the association, it represents approximately 190,000 companies. However, it was unclear how many of them were able or wanted to vote.
Britain’s economy is in tatters
Therefore, it is unclear whether the approval will be enough to save the association. Financial conditions are tight after many companies resign, and many of their 300 employees have to worry about their jobs. Image corruption is huge. The departure of prominent firms such as Lloyds of London, Mastercard and John Lewis has not only weakened the CBI. To make matters worse, the British government has stopped cooperating with the association, thereby taking back the working foundation of the CBI.
Furthermore, the British Chambers of Commerce (BCC) wanted to exploit the weakness of rival associations to create a platform to represent the interests of big companies under the guise of a “business council”. Oil company BP and airport operator Heathrow have joined the new lobby. BCC boss Shevaun Haviland said the companies were seeking change and “now is the right time to speak out”.
more: The mass exodus from the Confederation of British Industry