John Lewis and other major firms quit CBI after second rape claim

A number of major firms, including John Lewis, have left the CBI after a second allegation of rape at the business lobby group emerged.

The Guardian reported that a woman who was working at one of the CBI's overseas offices was sexually assaulted by two male colleagues.

It also reported an allegation of stalking by a CBI employee.

The CBI said the latest allegations were "abhorrent" and that it had previously been unaware of the claims.

A number of firms said they were cancelling their memberships with the business lobbying giant - which claims to represent 190,000 firms - while others said they were suspending activity with the group.

John Lewis said it made the decision to quit membership of the CBI "due to the further very serious and ongoing allegations".

Virgin Media O2 said the "disturbing allegations and the way the situation has been handled is not representative of business in Britain."

Firms that have quit the CBI include: John Lewis, BMW, Virgin Media O2, insurers Aviva, Zurich and Phoenix Group, banking firm Natwest, credit card company Mastercard; B&Q owner Kingfisher; media firm ITV; insurance marketplace Lloyds of London; investment firm Schroders; and auditor EY.

The Association of British Insurers has also left, as has Energy UK, which represents energy suppliers.

Companies that have suspended membership include: pharmaceutical giants GSK and AstraZeneca; airports operator Heathrow; retailers Tesco, Sainsbury's, Asda, and Marks & Spencer; banking group Santander; National Grid, Octopus Energy and Scottish Power; drinks giant Diageo; Rolls Royce; Unilever; BT; property company British Land; accountancy giant PwC; and Manpower Group.

Shell and BP are understood to have also paused membership of CBI.

The government had already announced that it was pausing its engagement with the business group.

Last week the British Insurance Brokers' Association said it had withdrawn its membership "in light of recent reports".

Working with police

The CBI, which employs more than 300 people, has been in crisis since allegations of a rape at a CBI summer party in 2019 and other sexual misconduct at the organisation emerged earlier this month.

Three employees have been suspended pending the outcome of an investigation by law firm Fox Williams. The group's director-general was dismissed over separate complaints.

Brian McBride, president of the CBI, said the group had not been previously aware of the most serious allegations and it was working closely with "the police to help ensure any perpetrators are brought to justice."

"Our hearts go out to any women who have been victims of the behaviour described," he said, adding that it was "vital" that the incidents be "thoroughly investigated".

The City of London Police was already investigating an alleged rape at a CBI summer party in 2019, before the Guardian reported a second incident.

Detective Chief Superintendent Richard Waight from the City of London Police said that no arrests had been made and its investigations were continuing, and asked anyone with any information to get in touch.

A source close to employees at the CBI said the crisis of the past few weeks had taken an "emotional toll" on staff at the lobbying group.

"At first there was relief that people were talking about it," the source said. "It felt as though taking it public was holding management to account."

"But now, as darker allegations have come out, this has been hard on the staff."

The source said there had been "an avalanche" of members resigning and that staff are concerned about their jobs.

"They're worried about whether the business will still be here tomorrow," the source said.

The problems at the CBI are becoming more acute by the hour. As new allegations of rape and stalking emerge, some of the UK's biggest companies have started to cut ties with the crisis-hit group.

The CBI is trying to move at pace. An investigation by law firm Fox Williams into numerous other alleged offences has been delivered to the group and it will communicate its findings and resulting actions early next week. The return of former CBI chief economist Rain Newton-Smith from Barclays has been fast-tracked for her to assume the vacated director-general's office within days.

But the cracks are already appearing and many member firms have told the BBC it is not a given that they can re-engage with a body with criminal investigations pending that could take many months. Little wonder the atmosphere at the CBI's head office is described as miserable.

Stalking allegation

The Guardian also reported that a woman at the CBI's London office had been stalked by a male colleague in 2018.

She complained to the CBI and a finding of harassment was upheld.

However, the newspaper reports that the man continued to work at the organisation and eventually left for unrelated reasons.

In response, the CBI said: "We recognise the substance of the harassment report outlined as relating to an allegation made and investigated in January 2018.

"The finding of harassment was upheld and a sanction was imposed."

Dame Carolyn Fairbairn was the director-general of the CBI between 2015 and 2020. The BBC has contacted her for comment.

Separately, the CBI fired director-general Tony Danker last week following claims of workplace misconduct against him which were investigated by Fox Williams.

Mr Danker took over from Dame Carolyn in late 2020.

In an interview with the BBC earlier this week, Mr Danker admitted that he had made some staff feel "very uncomfortable", adding, "I apologise for that."

But he said his name had become associated with claims of serious sexual assault that occurred before he joined the CBI. He is now considering legal action against the organisation.

Mr McBride said that Mr Danker had been sacked on strong legal grounds.

The CBI has appointed Rain Newton-Smith - its former chief economist - as its new director-general. Ms Newton-Smith had been at the CBI for nearly nine years before leaving last month to join Barclays.

Mr McBride said: "We are rightly undertaking an urgent root and branch review of our culture to right the wrongs where we can and to reform our workplace for everyone."

However, some have questioned whether someone who has worked at the CBI is the right person to lead an overhaul of the organisation and its culture.

Commenting on Thursday on Ms Newton-Smith's appointment, Ann Francke, the chief executive of the Chartered Management Institute, said: "I'm not sure there was a huge amount of openness and transparency around the process and obviously you can question whether somebody who was there is the right change agent to change the culture."