Employment Law Specialist Has Say on CBI Scandal

Published byLiam A Entwistle

7th June 2023

As the crisis-hit CBI wins a key confidence vote over its future following a series of scandals, our employment law specialist Liam Entwistle shares his views on how the organisation could have handled these problems from an HR perspective.

The reputation of The Confederation of British Industry (CBI) is in tatters despite for many years being one of Britain’s most prominent pro-business lobby groups.

Its president Brian McBride has since written an open letter to members reflecting on the organisation’s catalogue of failures.

In one of the most notable parts of the letter he wrote: “…we tried to find resolution in sexual harassment cases when we should have removed those offenders from our business. In retrospect, this last point was our most grievous error, which led to a reluctance among women to formalise complaints.”

This was one of a number of admissions about what could and should have been done better.

These events should serve as a warning to other organisations out there to examine their processes and procedures and make sure they have the right process in place. If a situation like this should ever arise, it is crucial that it is handled properly from the outset.

If a company has been accused of sexual misconduct, the first step is to conduct a thorough investigation into the allegations. This investigation should be conducted promptly and impartially, and involve interviewing witnesses, collecting evidence, and reviewing any relevant policies or procedures. It is also important to ensure that the investigation is conducted by a trained and experienced investigator, who can maintain confidentiality and objectively assess the facts.

Depending on the results of the investigation, the company may need to take disciplinary action against the accused individual, up to and including termination of employment. It may also be necessary to take steps to ensure that the victim is protected from retaliation, and to provide any necessary support or resources, such as counselling or medical attention.

Companies should have an effective whistleblowing policy in place and if they don’t, they should seek to implement one. A 2021 YouGov survey also revealed that employers need to get better at communicating with employees around whistleblowing, as half of those surveyed had no idea whether or not their employer had such a policy in place.

Some sectors, such as the financial services sector, regulated by the Financial Conduct Authority (FCA), have a legal imperative to have whistleblowing arrangements in place. Although initially implemented to cut out financial foul play, the FCA’s arrangement has evolved to address workplace culture after it became apparent that was necessary.

Finally, it is important for the company to communicate with employees, stakeholders, and the public about the steps it has taken to address any allegations made. This may involve issuing a public statement, conducting internal communications, or engaging with external stakeholders to address concerns and provide reassurance that the company is committed to creating a safe and respectful workplace for all.

Overall, companies accused of sexual misconduct must take swift and appropriate action to investigate and address the allegations, protect victims from retaliation, and prevent future incidents from occurring. Failure to do so can have significant legal and reputational consequences and may result in lasting harm to the company and its employees.