CBI admits to using non-disclosure agreements to silence staff

The CBI has admitted to using non-disclosure agreements to prevent staff from speaking publicly about their workplace experiences while simultaneously the UK business lobby group was trying to restore faith in its culture after allegations of sexual misconduct and bullying. 

Up to 10 non-disclosure agreements were signed over the past year alongside sizeable financial settlements reached by the CBI, the Guardian reported on Tuesday.

CBI employees told the newspaper in 2023 that they had been victims of sexual harassment, assault and rape while allegations were also made about a toxic workplace culture at the business group. 

The allegations triggered a crisis at the CBI that brought it to the brink of collapse.

Hundreds of companies suspended their memberships of the business group, which badly hit the CBI’s finances and forced it to cut jobs. The UK political establishment distanced itself. 

The CBI on Tuesday did not confirm the number of non-disclosure agreements or the precise timeframe in which they had been signed, but said: “as is common practice in settlement agreements, we do have clauses within them covering confidentiality, whose purpose is to mutually protect both parties’ confidential, private, commercial and personal information and data”. 

The CBI went on to say “we actively encourage a ‘speak-up’ culture”, adding that no individual had been restricted from “reporting any misconduct, crime, or regulatory breach to authorities, or from making protected disclosures”.

The House of Commons Treasury select committee said this month in a report into sexism in the City of London that it had heard that non-disclosure agreements were still being “misused” by employers to “cover up” allegations of abuse, harassment and discrimination.

The committee of MPs said the government should ban their use in sexual harassment cases. 

Tony Danker was dismissed as CBI director-general last year after an investigation into complaints about his workplace conduct. He reached a financial settlement with the business group in February.

Rain Newton-Smith, who succeeded Danker, told the Financial Times last November that she was committed to a “programme of change around people and culture”.

Principia Advisory, an ethics consulting firm, worked with the CBI to improve its governance and a new board of directors and leaders was appointed. 

Rupert Soames, who took over as CBI president last month, has been courting companies to restart their memberships.

He told the FT that about 80 to 90 per cent of businesses to whom he had spoken were positive about rejoining.

Letters in response to this article:

Sexual harassment in the workplace — the next steps / From Emma Barlett, Partner, CM Murray, London EC3, UK

Whistleblower ripples from across the pond / From Vera Cherepanova, Malibu, CA, US