Cultural transformation at the CBI _ lessons from the cultural rebuilding project

Airmic members heard how the CBI’s values, culture and purpose were severely tested by allegations of professional misconduct, and how new leadership had to react fast to steady the ship and rebuild confidence in the organisation. 

The CBI faced a crisis in April this year when the Guardian reported a number of allegations of professional misconduct against CBI employees – none of whom remain employed by the organisation – including, in the most serious case, incidents of sexual assault.

Alongside more traditional disciplinary processes, the CBI appointed law firm Fox Williams, to thoroughly investigate the complaints – including widening the investigation to former members of staff and offering anonymous channels for reporting of concerns.

Following this process, Fox Williams made 34 recommendations to reform the organisation’s governance and processes, including in crucial areas such as whistleblowing. All 34 recommendations have now been implemented in full with regular quarterly scorecards publicly available to show progress across specific themes.

Chief people officer Elizabeth Wallace joined in May, a month after the allegations broke, and at a time when some corporate members had chosen to leave the organisation. 

She discussed the CBI’s challenges with Sarah Miller, chief executive at ethics and corporate culture advisory firm Principia, which was appointed by the CBI in the wake of the crisis. 

The duo were speaking in London on November 23 at ‘The Risk Forum and Exhibition 2023’. 

Media Scrutiny

“The two things that I think were unique to the CBI were the level of media scrutiny - that was just a daily thing - and the fact it impacted such a purpose-driven organisation. On the media front, I felt like it was almost trauma upon trauma that people were experiencing,” Miller said.

“It's just a different level of media scrutiny when you consider the serious nature of some of the allegations involved.

“I think that heightened emotion and psychological toll on the culture of the organisation was the most significant that I've ever worked with and experienced.

Purpose driven

Miller said the CBI was one of the most strongly ‘purpose-driven’ organisations she had ever encountered, with staff having a real belief they were working for the greater good.

“When we work with really purpose driven organisations - ones that are very externally focused and motivated - that breaking of trust can be identity-shaking for people.

“Staff have a sense of ‘I am here because this is like my life's work - I'm here for the cause’ and when that's broken, there's something at the core of people that really psychologically affects them.

“And I do think that takes a lot of time and energy to rebuild and to heal. So that was what was unique to the situation at the CBI.”

Strong leadership

Wallace agreed that the CBI was a purpose-driven organisation, with staff having a clear sense of identity and their role in delivering success. That’s one of the things that made clear leadership so important in this particular crisis.

She said: “You really have to focus on being a leader. You know, being very strong, being very transparent and bringing your people along with you. Because I think there was a huge amount of shock internally.

“The CBI is a very purpose driven organisation. If anyone here has had any interaction with people from the CBI, I think you will know that. 

“And with that deep sense of purpose, I think people felt that they didn't recognise the portrayal they were seeing in headlines. There was a sense of: what's going on here? And it really impacted their confidence.

Wallace said there was “no playbook for these crises” but felt the CBI had done well to “swing into action” quickly, appointing Fox Williams and working hard to ensure staff were comfortable voicing their thoughts and concerns.