The Confederation of British Industry has been abandoned by major sponsors of its annual conference, posing another challenge to the lobby group as it battles for survival in the wake of a sexual assault scandal.
The event typically takes place in November and attracts high-profile political speakers alongside bosses from the UK’s biggest companies. Prime Minister Rishi Sunak and Labour Party leader Keir Starmer addressed delegates at the CBI’s last conference in November, in Birmingham.
Three months later, the CBI was hit by multiple allegations of sexual assault among its staff, including from two women who said they’d been raped by colleagues.
Recruitment specialist Hays Plc sponsored the conference for about a decade but has since quit the CBI and won’t take part this year, a spokesperson said. The other leading sponsor, Accenture Plc, terminated its membership in April.
Another sponsor from last year, Phoenix Group Holdings Plc, is no longer a member of the CBI and won’t be involved in the conference, a spokesperson said. In an emailed statement, Shell Plc — also a corporate partner in 2022 — said it supported the business group’s plans to reform itself following “very significant failings” and would review its progress. However, the energy giant has no plans to sponsor the event.
Read More: CBI Warns of Job Cuts in Battle to Survive Assault Scandal
The CBI won a reprieve when 93% of votes from members supported the organization’s efforts to learn from the scandal and continue operating. Director General Rain Newton-Smith hailed the outcome but critics pointed to a low turnout — only 371 votes were cast. CBI in the past has had about 1,500 direct members.
A swathe of big companies quit the group following the sexual assault allegations first published in the Guardian newspaper. Former director general Tony Danker was dismissed due to concerns over his conduct toward colleagues. Claims made against Danker were separate and unrelated to the more serious allegations, which are reported to have occurred before he joined the CBI.
The government stopped engaging with the CBI in April and has not said whether it will resume high-level meetings. The business group was previously credited with influencing UK policies such as the furlough scheme that subsidized salaries during Covid-19, and the widening of childcare support.
Read more: Big Business Shuns CBI Group’s Crucial Vote on Its Future
The CBI derives most of its income from membership fees, which accounted for more than £22 million ($28 million) in 2021.
Still, events such as its annual conference form a crucial part of its commercial revenues, which plummeted from more than £3 million per annum in the years leading up to the pandemic, to £1.78 million in 2020. The return of in-person events the following year helped commercial revenues to rebound by 47%.
No sponsors from the last three CBI conferences told Bloomberg News they would support the event again. NatWest Group Plc, a corporate partner when the conference was held virtually during the pandemic, is no longer a CBI member. National Grid Plc, a partner the following year, has also left the group.
A spokesperson for the CBI declined to comment.