LONDON’S BUSINESS NEWSPAPER
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CITYAM.COM
CBI SURVIVES BUT ACCESS UP IN THE AIR
WEDNESDAY 7 JUNE 2023
ISSUE 3,991
FREE
BODY WINS CRISIS VOTE BUT QUESTIONS REMAIN OVER LOBBY GROUP’S ACCESS TO MINISTERS JESSICA FRANK-KEYES THE CBI survived a no-confidence vote on its future yesterday after members voted in favour of the scandal-hit lobbying organisation’s transformation plan – but government sources suggested the victory wouldn’t see the lobbying organisation invited back into Downing Street anytime soon. The vote of 93 per cent in favour to seven per cent against from the group’s membership came as a major boost to the six-decades old business body, which has battled weeks of scandal. Since lurid allegations of sexual misconduct and abuse were reported in newspapers, the body has introduced a new people and culture committee and begun work on a leadership shake-up. Members were asked whether
“the changes we have made − and the commitments we have set out − to reform our governance, culture, and purpose give you the confidence you need to support the CBI?” Rain Newton-Smith (pictured), the long-time CBI economist and new director general, said she was “deeply grateful for the faith shown in us by our members.” Though the margin of victory was significant, government sources noted the number of votes – a total of 371 cast by individual corporate members and trade associations – contrasted heavily with the 190,000 businesses the CBI claims to represent. The government has frozen engagement with the body since the claims emerged – a stance mirrored by the Labour party – representing an existential threat to an organisation which relies on its
access to senior decision-makers in its pitch to members. One senior Tory source told City A.M.: “Not to rain on their parade, but I’m not convinced that a secret ballot of 0.2 per cent of the businesses the CBI claims to represent is going to mean the government or political parties opening their arms and saying all is forgiven.” Those members who had already terminated their membership, such as Aviva and Phoenix, were not entitled to a vote. A government spokesperson said: “We will continue to engage with businesses on a case-by-case basis and business groups where appropriate. “The CBI is responsible for rebuilding the trust and confidence of their membership,” the spokesperson added. Despite the victory, a headcount reduction is expected due to the pull-out of a number of high-fee-paying corporate members.
IT’S PARS IN OUR TIME LIV Golf and PGA end civil war with merger FRANK DALLERES THE PGA Tour, DP World Tour and LIV Golf announced a shock merger yesterday to end the long-running conflict involving the sport’s three biggest men’s professional circuits. It will see the tours continue as separate competitions but combine their rights under one new entity and end long-running legal action between the challenger LIV Golf and the two legacy circuits. All parties said details were still to be finalised, but the deal would see Saudi Arabia’s Public Investment Fund,
which has bankrolled LIV Golf, become the sole new investor. PIF governor Yasir Al-Rumayyan said the investment could total billions of dollars, while PGA Tour commissioner Jay Monahan called it “a historical day for the PGA Tour and the game of golf. And it’s a historical day for the PIF and the DP World Tour. “There’s been a lot of tension in our sport over the last couple of years. But what we’re talking about today is coming together to unify the game of golf.” £ SPORT: 19-20
Shell hits back at adverts watchdog after it accuses firm of greenwashing NICHOLAS EARL ENERGY giant Shell last night hit back at the UK’s advertising watchdog, after the body found it guilty of greenwashing. The Advertising Standards Authority (ASA) upheld a complaint that two Shell adverts, which
emphasised the company’s renewable credentials, were likely to “mislead consumers [by misrepresenting] the contribution that lower-carbon initiatives played, or would play in the near future, as part of the overall balance of a company’s activities”. Shell disagreed with the decision,
arguing their advertising campaign was essential for drawing awareness to their growing green agenda. A spokesperson for Shell said: “People are already well aware that Shell produces the oil and gas they depend on today. When customers fill up at our petrol stations across the UK, it’s under the instantly-
recognisable Shell logo.” Shell has warned the ASA it would be disproportionate and unworkable for regulators to require businesses with diverse product portfolios to ensure that ads, whose primary purpose was usually to promote a specific range of products, always provided a full
overview of the advertiser’s business as a whole. It is not the first time the ASA has hit out at a corporate giant over green claims, having banned two ads created by HSBC touting its environmental contribution despite it “continuing to significantly finance” non-green projects.
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