KPMG and Natwest have renewed their association with the Confederation of British Industry (CBI) after a pause lasting 18 months over suspended memberships, undeterred by past controversies.
Joining Addleshaw Goddard, the city law firm in this re-engagement, both entities signal bolstered trust in the CBI's ongoing restructuring, hinting at resurgence for the group known as business leaders' advocate to policymakers, as reported by .
April 2023 saw the CBI grappling with financial tumult due to serious misconduct allegations, prompting probe by the City of London police.
In response to the crisis and subsequent reputational damage, reforms were promised, encapsulated by Rain Newton-Smith, recently appointed chief executive, who asserted: "Let me be clear, we have listened, we have acted and we will leave no stone unturned to be the best voice for business inside and out."
Prior to the debacle, all big four audit and accountancy firms had suspended their ties, following suit companies such as John Lewis and ITV.
The mass withdrawal precipitated a dire need for a financial lifeline from Natwest among other banks to thwart CBI's impending collapse.
Consequently, drastic operational changes ensued within the lobbying giant, featuring staff cuts and the shutdown of numerous overseas branches.
Several major British companies, including Astrazeneca, Unilever, and GSK, had already reaffirmed their commitment to the CBI in 2023, providing a significant boost to the lobbying group as it navigated its path towards recovery.
However, Aviva, the FTSE 100 insurer that was at the forefront of calls for companies to terminate their memberships in the wake of the scandal, remains hesitant to re-engage with the CBI.
Exploratory discussions regarding a potential merger with Make º£½ÇÊÓƵ, a manufacturing trade body, were initiated in 2023 but ultimately abandoned.
The CBI is set to provide an update on its financial situation at its upcoming annual meeting later this month.
A spokesperson for the organisation expressed confidence to City AM, stating: "While it has been a difficult time for the organisation, we are absolutely confident that we will be representing the cross-economy voice of business for many years to come".
