Rosalind Evans
John Allan, Tesco’s chairman, is set to resign in the face of controversy surrounding his behaviour. Allan, who formerly led the CBI business lobby group, has categorically refuted three out of four allegations levelled against him.
Board member Byron Grote, Allan’s interim successor, expressed concern that the ongoing allegations could pose a disruptive issue for Tesco. The company, however, emphasized that they have not uncovered any evidence of misconduct.
Allan’s departure in June will conclude his eight-year tenure as Tesco’s chairman. He expressed regret over his early departure, attributing it to the “anonymous and unsubstantiated” accusations, as reported by the Guardian.
The Guardian’s report accused Allan of inappropriately touching an employee at Tesco’s yearly shareholder gathering last year. It further alleged that Allan had engaged in improper conduct at a CBI event in 2019, an accusation he has previously refuted as entirely false.
Additional allegations include a comment he allegedly made about a CBI staff member’s attire and appearance in 2021, which Allan states he does not remember. However, Allan acknowledged commenting on a female CBI employee’s dress in late 2019, expressing regret and offering an immediate apology.
Allan served as CBI’s president from 2018 to 2020 and spent another year as vice president. After the alleged inappropriate conduct towards a Tesco employee, the retail giant commenced a comprehensive review of the accusation.
The company appealed to its employees to step forward with any issues concerning conduct, particularly during the Tesco 2022 annual general meeting (AGM). They also scrutinized video footage from the event and examined internal complaints records.
Grote acknowledged that while there were no complaints or proven misconduct related to Allan’s conduct, the allegations could distract Tesco. Grote also thanked Allan for his significant contributions to the company.
Allan maintained his innocence, describing the allegations as “utterly baseless”. He highlighted that Tesco’s internal investigations had found no evidence to support any wrongdoing during his chairmanship.
Separately, the CBI, the largest lobby group in the UK, is dealing with its sexual misconduct allegations, including two ongoing rape investigations by the City of London Police. Following an external examination, the CBI admitted to employing “culturally toxic” staff and neglecting to terminate those guilty of sexual harassment.
The CBI has since dismissed several staff members and appointed former chief economist Rain Newton-Smith, as director general. She replaced Tony Danker, dismissed in April due to separate workplace misconduct allegations. Danker admitted that he had made some staff uncomfortable and offered his apology but denied any association with different accusations, including rape, that allegedly took place at the CBI before his tenure.
