The CBI has suspended all its external events including its annual dinner after it deals with allegations of rape, sexual harassment and other misconduct at then organisation.
A number of members have distanced themselves from the CBI, some saying that they are reviewing their membership. Of course, it could give them a convenient excuse to leave.
The allegations are being investigated by a law firm, but there are deeper structural problems at the voice of British business.
These can be dated back to the late 1960s when it decided to become a de facto Confederation of British Business by admitting retailers and other non-manufacturing firms as full members. Although that may have boosted income as the manufacturing sector declined, it diluted the CBI's voice as a spokesperson for manufacturing. That vacuum has been partly filled by MakeUK, formerly the Engineering Employers' Federation.
The CBI reached the peak of its persuasive power in the 1970s as a part of a tripartite arrangement for economic policy. Its voluntary prices initiative helped to shore up the Heath Government's prices and incomes policy. The 1974-79 Labour Government often referred to the 'Government, the TUC and the CBI' in the Queen's Speech.
As far as Mrs Thatcher was concerned, the CBI was a relic of harmful corporatism and its influence waned. It did recover some ground under the Major Government and New Labour, but government increasingly consulted directly with leading firms, sometimes formalised in business advisory councils.
With business being overwhelmingly remain, Boris Johnson had little time for their views as he expressed with an expletive.
Weathering this crisis and remaining a credible voice of business is going to be challenging.
No comments:
Post a Comment