Hidden Voices: The CBI, corporate lobbying and sustainabilityCBI membership in terms of industry coverage is patchy with a disproportionately highnumber of members from financial services and manufacturing relative to their representationin the UK workforce but a disproportionately low number represented in retail and distribution(the UK’s second largest sector in terms of employment) 8 . The largest single group isconsultants and then lawyers. In total, more than 500 CBI members (well over a quarter) canbe classified as business services or consultancies.The CBI membership also includes a range of professional associations, universities andother public bodies – not obvious candidates to be embraced by the organisation’s boast ofbeing “The Voice of British Business”. These include several tourist boards, the BritishRacing Drivers Club, the Professional Cricketers Association, the Warwickshire Cricket Club,the British Library and the Birmingham Symphony Orchestra.Sectoral imbalancesCBI membershipWorkforceOther sectorsFinance & servicesRetail, distributionManufacturing0 10 20 30 40 50 60percentage of totalFigure 1: CBI membership by industry sector compared to total UK private-sector workforce byindustry sectorWhat is surprising is that trade associations make up more than half of the CBI’s companymembers. These trade association members range from substantial bodies, such as theEngineering Employers’ Federation (EEF) and the Chemical Industries Association (CIA), totiny organisations, such as the Kaolin and Ball Clay Association. If you ignore the tradeassociations the CBI has only around 1,800 individual company members employing around4 million people which is similar to the British Chamber of Commerce(BCC). However, byincluding trade associations the CBI can then claim coverage of more than 40 per cent of theUK workforce significantly boosting its leverage over Government.What about representation?The question, then, arises as to how the CBI represents fairly the views of individualcompany members both within and outside the many trade associations. The difficulties interms of formulating policy to accommodate the diverse views of its membership often resultin the CBI employing the lowest common denominator or the ’business as usual’ position(see ‘Formulating and promoting policy’, page 13 and ‘Environment – it’s not our problem’,page 21).The problem of fair and equal representation of individual companies within tradeassociations is even more difficult. How do the individual company members within tradeassociations defer decisions to their leadership? Can the trade associations then act as‘block vote’, undermining the principle of ‘one member, one vote’?.A report from Green Alliance on the influence of company lobbyists commented:14
Hidden Voices: The CBI, corporate lobbying and sustainability“Pan-industry bodies such as the Confederation of British Industry (CBI) and the Institute ofDirectors have the most severe issues when it comes to representing the full cross-section oftheir members. In the absence of formal practices for consulting their members, there isnothing to prevent the line they take being at odds with what parts of the membership reallythink.” 9It is not clear as to how the trade associations represent their members within the CBI. As wecan see from the section below on formulating policy and later on in the case studies, thereare clearly problems with how the CBI seeks to represent its members in terms of policypositions. At times this can lead to open rebellion such as in the case of the CBI report on UKenvironmental regulations. Prominent CBI member the Chemical Industry Associationpublished a public statement on the day of the launch of the CBI report distancingthemselves from much of the CBI criticism of regulators (see case studies, page 33).1.2 Formulating and promoting policyHow is policy developed?Directorates and Committees: The CBI staff are organised into Directorates including theBusiness and Environment Directorate and these are managed by the Director General andthe Deputy Director General.There are a significant number of standing committees and working groups listed in theCBI Directory that work on a broad range of issues from training and taxation to Europe andthe environment. These committees and working groups help develop policy for the CBIalthough ultimately it is the responsibility of the Directorate within the CBI to draw up policypositions. When agreed the policy positions within the CBI are usually presented publiclythrough the Director General or a delegated spokesperson.In principle the CBI develops and approves its policy along similar lines to most membershiporganisations. Its members of staff are primarily responsible for drawing up policy papers,which are then put out for consultation to the regions and specialist committees. Staffmembers take into account any responses, and draft up amendments. But the committeemembers are not necessarily asked to approve the final paper, and committee membershave told us that, at times, official CBI pronouncements have emerged without any referenceto the relevant committee. Listed below are some of the key problems with the CBI’sapproach to representing the view of its members on Government policy.‘Secret and unbalanced’ committeesThe CBI standing committees are vital in terms of helping develop the CBI’s position in keyareas of interest. More broadly, the balance of its committee membership is critical indetermining its policy positions, especially on issues such as energy, which impact ondifferent sectors to very varying degrees. The current membership of the Energy PolicyCommittee demonstrates how imbalanced it can be (see Box 1).Box 1: CBI Energy Policy CommitteeChair: AlcanSupply industry members: Scottish Power, Powergen, Northern Electric, RWE Energy,Centrica, National Grid, Transco, the Association of Electricity Producers, UK Coal, BNFL,BP, ExxonMobil, Combined Heat and Power Association, StratagasHeavy power users: Castle Cement, Air Products, BOC, Brunner MondOther users: Sainsbury’s, BootsPlus Association for the Conservation of EnergySource: Anonymous committee member15
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