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.
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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.
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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.
