Staff at the Confederation of British Industry (CBI) have been told they must obtain permission from their line managers to drink alcohol at their summer party. The new policy follows the CBI scandal that gave birth to allegations of sexual harassment at its last party.
Here, we consider the original scandal and the new alcohol policy now in place at the organisation.
What Happened in the CBI Scandal?
The Confederation of British Industry was formed by royal charter in 1965. The not-for-profit organisation represents businesses around the globe, advocating their views to policymakers at a national and international level.
Describing itself as “the catalyst between industry and government to drive positive change”, until recent years the Confederation of British Industry was a well-respected organisation with many highly regarded members. In 2019, though, this changed.
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Following a CBI London summer party held on a boat on the Thames, numerous allegations began to emerge regarding the goings-on at that party. These included one allegation of rape and another of sexual harassment, prevalent cocaine use, and excessive alcohol consumption.
Similar allegations relating to other CBI events also began to surface, and the media became involved.
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Summer Party Scandal Reveals Dark Debauchery
According to reports, CBI received a total of more than a dozen complaints of harassment at work in 2023. These included sexual harassment allegations against the organisation’s former director general, Tony Danker, and other senior employees. Complainants included Rain Newton-Smith, formerly chief economist and now chief executive of the organisation. As might be expected, the organisation’s reputation suffered significant damage as a result of the widespread controversy.
Many of the organisation’s major members left as a result of the allegations, like BMW and John Lewis. As a result, CBI’s total membership count has fallen from 190,000 to 170,000 in the past year. The organisation has since conducted an internal investigation and Tony Danker was dismissed in April 2023, to be replaced by Rain Newton-Smith.
Former CBI chair, Brian McBride, sent an open letter to remain members, stating that the organisation had hired “culturally toxic” people and failed to hold them accountable for wrongdoing. Meanwhile, Rain Newton-Smith extended an apology to employees, stating that she was “profoundly sorry” for “how our organisation let you down”.
Alcohol Policy Following CBI Scandal Urges Employees to Seek Permission Before Drinking
As a result of the extensive allegations against senior staff members and the subsequent negative press attention, higher-ups have decided that things must change at the organisation. Rupert Soames replaced Brian McBride as CBI chair earlier this year. He is determined to prevent future issues of this kind and one of his first steps has been to implement the new policy.
The new alcohol policy sets out, and somewhat changes, the organisation’s stance on consumption, making the standard stricter. The policy lists several rules for employees to comply with on workplace conduct. According to the Daily Mail, the policy states that alcohol may only be served at staff-only events if food is also being provided.
Employees must seek permission from their line managers before partaking in alcohol consumption at work events outside working hours. Drinking to excess is completely prohibited, even for those with permission to drink. Still, more stringent rules are said to be in place for external events such as the CBI London Summer Reception scheduled for later this month.
These policy changes are integral following the CBI scandal as a way for CBI to regain the trust of its employees. Plus, there is a need for damage control to recover the CBI’s reputation. In a statement, the organisation confirmed wanting to create a safe environment for employees. “These new policies are part of our ongoing efforts to rebuild trust and ensure the highest standards of conduct at all CBI events”, they say.
CBI Scandal: Managing Alcohol Consumption at Work Events
According to a report published by Alcohol Change UK, alcohol consumption can have significant and long-reaching ramifications in the workplace. It reveals that 40% of employers classify alcohol consumption as a significant cause of low productivity, with 23% of employees agreeing to have experienced this personally. Plus, 25% of employees state that drugs and/or alcohol have affected them at work.
The report also highlights a number of industries in which the consumption of alcohol is more prevalent. These include construction, hospitality, arts and entertainment, utilities, and wholesale. However, there are additional factors likely to increase the risk of alcohol consumption. Shift work, poor working conditions, conflict in the workplace, and low job security can all contribute directly to alcohol consumption.
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Managing Alcohol Abuse at Work
Alcohol consumption can, in turn, have a huge impact on workplace conduct. Naturally, excessive booze consumption can negatively affect the consumer’s health, but it can also impact that person’s colleagues. According to Drinkaware, 39% of people who experience rape or attempted rape say the perpetrator was under the influence of alcohol. It follows that alcohol consumption heightens the risk of sexual harassment at work.
There are certain steps which employers can take to help minimise the impact of drinking in the workplace. These might include but are not limited to:
- Changing the culture of drinking at work,
- Implementing an alcohol policy, detailing best practices during events
- Providing training to employees about the potential effects of alcohol consumption. Additionally, employers can also offer resources and medical help to those unable to control excessive consumption or suffer from alcoholism
- Ensuring that social events are not drink-centred, and
- Providing alcohol-free options