A statement from the REC has called the Confederation of British Industry’s appointment of Newton-Smith “an important first step” in dealing with allegations against staff members that have shaken the leading business organisation this spring.

The CBI said it had fired its previous DG Tony Danker and suspended three others after an investigation into complaints of workplace misconduct at the organisation. Yesterday [11 April], it appointed Newton-Smith, its former chief economist, as the CBI’s new leader.

“The allegations that have been made over recent weeks about the CBI have been devastating,” a CBI statement said on Tuesday. “While investigations continue into a number of these, it is already clear to all of us that there have been serious failings in how we have acted as an organisation. We must do better, and we must be better.”

Danker stepped aside in March while the CBI conducted a review into his behaviour.

Commenting on the situation, REC CEO Neil Carberry, a former CBI employee, said: “As (CBI) members, the REC asked the CBI Board for decisive leadership to tackle the appalling allegations reported in the press this spring. Today’s announcement is an important first step in doing that.

“[Rain] Newton-Smith is an excellent appointment as director general and enjoys our full confidence and support. She has a big task to take on. At this time, the first priority should be supporting female members of staff who have faced unacceptable behaviours.”

Carberry worked at the CBI in various roles for nearly 14 years, leaving in June 2018 when he was appointed CEO at the REC.

Carberry went on to say: “As businesses, let’s commit to making sure people are unafraid to raise concerns about their experience at work. Policies and expectations are nothing unless they are widely communicated, understood and adhered to. These events are a warning to all that it is better to address emerging problems quickly, leaning on sector bodies, Acas and professional specialists for advice.”

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