The scandal-hit Confederation of British Industry has appointed a “chief people officer” in an attempt to overhaul the lobby group’s internal culture after a series of sexual misconduct allegations reported by the Guardian.
Elizabeth Wallace, a former headhunter for BlackRock, will take up the new role as part of the CBI executive committee and will report on workplace conduct and culture issues directly to the board.
The CBI said Wallace’s appointment was the latest in a series of “decisive steps to rebuild trust in the CBI’s culture and purpose”, having also appointed the business ethics consultancy Principia Advisory to help overhaul its operations earlier this month.
The lobby group is embarking on a wide-reaching turnaround plan as it tries to regain the trust of its members.
More than 50 large businesses, including John Lewis and NatWest, suspended or cancelled their membership last month after the Guardian’s publication of a series of allegations of sexual misconduct. Those allegations included a woman’s claim that she was raped by a manager during a 2019 summer boat party on the River Thames, and a second allegation that a separate woman was raped by two male colleagues when she worked at an overseas office of the CBI.
The lobby group said Wallace would start by implementing the 35 recommendations put forward by the law firm Fox Williams, which held an independent investigation into allegations of misconduct at the business lobby group and outlined ways that the group could improve its culture and management.
While the CBI has paused its formal operations, it is preparing itself for an extraordinary general meeting on 6 June, when it is expected to try to regain the trust – and substantial fees – of former members.
The CBI director general, Rain Newton-Smith, said Wallace’s role “will be integral in reforming our people strategy – defining our shared values as we collectively recover from the challenges of recent weeks. With over two decades’ worth of experience, I’m confident that her guidance will accelerate our efforts to effect meaningful change across the CBI.”
Newton-Smith has already hinted at plans to rename the CBI as part of a group-wide revamp. The director general herself is part of that overhaul, having taken over from Tony Danker, who was sacked in April after separate allegations of misconduct were made against him, unrelated to the allegations of rape.
After his dismissal Danker told the BBC he felt he had been “the fall guy” for allegations unrelated to his own conduct and that his reputation had been “trashed”.
Wallace said she was delighted the board trusted her to “lead the way on cultural transformation here at the CBI”.
• Information and support for anyone affected by rape or sexual abuse issues is available from the following organisations. In the UK, Rape Crisis offers support on 0808 500 2222 in England and Wales, 0808 801 0302 in Scotland, or 0800 0246 991 in Northern Ireland. In the US, Rainn offers support on 800-656-4673. In Australia, support is available at 1800Respect (1800 737 732). Other international helplines can be found at ibiblio.org/rcip/internl.html
