How do you solve a problem like the CBI?
The scandal-hit trade body, which represents 190,000 businesses, has been in full crisis mode since The Guardian reported claims of workplace misconduct, harassment and sexual assault.
Former boss Tony Danker has been sacked following complaints about his behaviour and has taken to both mainstream and social media to complain about his reputation being “destroyed” and being made the “fall guy”.
And many organisations have moved to distance themselves from the lobby group.
John Lewis, Virgin Media 02, NatWest and B&Q are among the organisations that have either suspended or ended their membership.
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Additionally, Chancellor Jeremy Hunt told a business conference, "there's no point engaging with the CBI when their own members have deserted them in droves."
Chancellor Jeremy Hunt says there is "no point" in talking to the CBI while the lobby group is dealing with allegations that have brought its future into doubt https://t.co/z7G0aptuGF
— Sky News (@SkyNews) April 24, 2023
And there are reports companies are scrambling to join a new body – BizUK.
It is a mighty mess.
And one it falls on to Rain Newton-Smith, the new director general, to try and resolve.
One of her ideas – and the one grabbing the headlines - is to rebrand the organisation.
Speaking to the Financial Times, she said: “Personally, over time, I’m sure we’re going to see a new name for the CBI, but that’s just the wrapper that goes on the outside.
“What matters is what we do, what we deliver and our purpose.”
CBI to be renamed as part of root and brand reform Financial Times
CBI to be renamed in wake of scandal, says new boss Guardian
What is the CBI? New boss says crisis-hit lobby group to be renamed Evening Standard
The rebrand would be part of a “root and branch” reform of the organisation – it is always a ‘root and branch review’ when things go wrong.
And there does seem to be a commitment to change.
“The CBI that emerges from this is not going to be the CBI of the past, that is clear,” she said.
“It needs to be a new, a different organisation.”
With the organisation suspending all its policy and membership activities until June, Ms Newton-Smith has around a month to get her reputation rebuild underway.
But longer term, would a rebrand work?
Of course, the CBI is not the first organisation to consider a rebrand as a way of rebuilding its reputation after a crisis and distancing itself from the past.
Amid several scandals, Facebook changed its corporate name to Meta in a bid to distance itself from controversy – although rebranding the corporate name but not the product seemed like an attempt to have the best of both worlds.
When Hermes changed its name to Evri, the official reason was the company was going through a “major transformation” and securing “significant investment and dramatic growth.”
But the timing was interesting as the rebrand happened after a report in The Times showed parcels being launched around a depot in a bid to save time. Footage also showed a manager telling drivers to “act stupid” when dealing with customer complaints.
Perhaps a more understandable rebrand was the Lance Armstrong Foundation. It rebranded as the Livestrong Foundation after the cyclist’s doping admissions in 2012.
Years earlier, Philip Morris, makers of cigarette brands Marlboro and Chesterfield, changed its name to the Altria Group to distance itself from lawsuits against its tobacco brands.
It is also worth bearing in mind that if the CBI does rebrand, it will not be the first time it has changed its identity.
It largely dropped the words ‘Confederation of British Industry’, in 2001, in favour of the acronym CBI, to distance itself from the “rather outdated terms of ‘confederation’ and ‘industry’”.
But the current circumstances are much different.
And you can see why a new identity is being discussed even if rebranding feels like a last resort in crisis management.
The CBI brand is now “beyond repair”, according to Andy Wood, the chief executive of brewer Adnams.
City fund manager Baroness Morrissey has said the organisation is “finished”.
"I'm afraid they've left it too little too late."
— BBC Radio 4 Today (@BBCr4today) April 25, 2023
Baroness Helena Morrissey, who campaigns for diversity on boards, tells @JustinOnWeb that business lobby group CBI needs to "completely start again" after allegations of sexual assault.https://t.co/8ZAfCSNH8c | #R4Today pic.twitter.com/iJRypGoFIT
But would a name change help CBI emerge from the current crisis and shed its image?
Or would it be seen as little more than window dressing? Will people see through it, particularly in the short term?
To answer those questions, I spoke to Chris Maughan, one of the expert tutors who deliver our crisis communication training.
He said: “Perhaps the word ‘rebrand’ is part of the problem. What does it mean?
“Is it an upgrade? Is it a new approach or culture promoting human qualities fit for a digital age and a global economy? There may be a snappy, sharper new name and an eye-catching logo.
“Many organisations have successfully modernised, creating updated versions of themselves to be more relevant or meaningful to their audiences, customers or sectors.
“A huge challenge for the CBI, a collective claiming to represent tens of thousands of UK businesses, is identity.
“Unfortunately, recent recriminations and allegations have seen the body being pulled apart, rather than displaying unity.
“The idea of a new name has been floated. But didn’t sound definitive.
“Speculating will provide column inches for the business pages but from a murky, troubled present, the new director general needs clarity to find a clearer, brighter future.”
In short, rebranding alone is not enough. It must be underpinned by meaningful change, new systems, processes, and cultures.
You can have the same organisation under a different name.
These are views shared by James Greenfield, CEO and founder of branding experts Koto.
"If someone thinks a rebrand will totally cover the crisis then that's a big mistake," he said.
"It can be an effective part of a turnaround or rebuild, but it can't sort all your problems. A blended approach is best. Evri's recent appearance hasn't sorted what was Hermes problems, which lay with a poor user experience.
"You need to think about what the change signals and join it up to your PR and Marketing efforts. What is the overall narrative and how is it going to positively effect the customer experience. A little humility always goes a long way.
In the CBI case, the issues are so big that starting again makes a lot of sense, but it will need to come with leadership and cultural change to actually work in my opinion."
What advice would he give the CBI?
"Really work on the story of why it is happening," he said.
"Think about the strategy carefully. Don't try and do it over night flicking a light switch on and off. Build out a public narrative of why your mission is important and how this change in the long run will be a positive thing.
"Think carefully about the new name and brand to make it relevant for the organisation you are going to become, not just day one."
Whatever name the CBI goes under in future, the organisation must be seen to have fundamentally changed.
And there are some positive signs on that front. Ms Newton-Smith has said she is “profoundly sorry” for how victims of sexual misconduct were let down by the business group – a crucial crisis step.
And the organisation’s president Brian McBride has admitted the organisation has “badly let down” those who work for it.
In an open letter, he said: “CBI senior leaders and board members, as you can imagine, have experienced many difficult emotions since those events, the most serious of which date from some years ago, became known to us.
“The greatest of these emotions is a collective sense of shame, for having so badly let down the enthusiastic, ambitious and passionate people who came to work at the CBI. They rightly expected to be able to do so in a safe environment, and we failed them.”
But the battle to rebuild its reputation remains an uphill one.
Speculation
Chris’ point about speculation is also pertinent.
The commitment to a rebrand in the quote is a little sketchy.
Yet “I’m sure we are going to see a new name”, is enough for reports it will happen.
Journalists love to speculate.
In a crisis, the speculation could include how the incident happened. And what the organisation might do differently in future – including rebranding if the crisis is big enough.
But getting involved in speculation rarely results in successful outcomes.
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