Big business mulls quitting scandal- hit CBI

Heavyweight corporate members of the Confederation of British Industry (CBI) are weighing up whether to pull out of the group as it faces an existential crisis over a sex and drugs scandal.

Engine maker Rolls-Royce said it was awaiting the outcome of an internal investigation before deciding whether to remain part of the business lobby group.

Another major player will consider its options once the CBI’s report is complete. And a senior source at a third big name firm admitted any rumblings from staff or shareholders over membership could force the hand of bosses.

Out: The CBI is fighting to survive a sex and drugs scandal and on Tuesday sacked boss Tony Danker (pictured) over allegations of misconduct that surfaced this year 

The CBI is fighting to survive the scandal and on Tuesday sacked boss Tony Danker over allegations of misconduct that surfaced this year. 

Meanwhile, police are investigating separate claims which emerged last week that have seen three members of staff suspended.

One woman said she was raped at a CBI staff party on a boat on the River Thames. There were also claims of widespread cocaine use.

The scandal has emboldened critics who say the CBI is not fit for purpose and should be disbanded.

However others including Warren East, the former Rolls-Royce chief executive, maintain that it gives businesses, especially smaller firms, an important platform. The CBI represents 190,000 British businesses of all sizes and sectors.

Without their subscriptions it will lose the funding it needs to hold high-profile conferences and maintain a public presence. 

One leading FTSE 100 company said the sacking of Danker was ‘pretty decisive’. It will ‘await the outcome’ of a report commissioned by lawyers before determining any response.

‘We won’t be taking part in any engagements with the CBI in the interim period,’ the source said. Pulling out was not ruled out.

Rolls-Royce said: ‘The recent allegations are deeply concerning. 

We note the actions that the CBI has announced and that investigations are continuing. We will await the completion of these before considering our membership.’

John Longworth, the former boss of the British Chambers of Commerce, said the CBI has not been fit for purpose ‘for some time’.

He called the organisation ‘a doppelganger of Whitehall’ and said it was ‘not run by entrepreneurs for enterprise’.

East said: ‘For companies with a strong global brand and good access to government, help in being heard is less necessary.

‘But smaller and medium sized businesses which make up a crucial part of the economy do not often have such advantages, and I’ve seen trade associations like the CBI and others be very useful in giving them a voice.’

This post first appeared on Dailymail.co.uk