The boss of the Confederation of British Industry (CBI) has been fired and three other employees suspended in the wake of a "devastating" sexual misconduct scandal at the business lobbying group.

Tony Danker has been dismissed with immediate effect, it was announced on Tuesday, following an independent investigation into complaints of harassment made against him by a female colleague.

In his place, former CBI chief economist Rain Newton-Smith will become director general, a statement added.

Meanwhile, as an investigation into separate allegations made against senior managers continues, the CBI said it had suspended three unnamed employees.

One woman said she was raped at a 2019 staff party, according to the Guardian, with complainants describing a “toxic culture” of “unchecked misogyny”.

Another woman claimed to have been a victim of attempted sexual assault at the same party, while other female staff said they were propositioned and were sent unsolicited explicit images by their male bosses.

Neither of these claims relate to Mr Danker.

The complaint against Mr Danker by a female employee alleged that he sent her unsolicited messages over a period of more than a year, as well as making unwanted verbal remarks. He is also alleged to have viewed employees’ personal Instagram profiles. 

Mr Danker had stepped aside while the investigation was ongoing. He has previously apologised for causing "offence or anxiety", saying it was completely unintentional.

The law firm Fox Williams is leading an independent investigation into the claims, and the CBI said it is also liaising with police.

Mr Danker is not the subject of any of the more recent allegations but the CBI board said that "his own conduct fell short of that expected of the director general".

The CBI statement added: "The allegations that have been made over recent weeks about the CBI have been devastating. 

"While investigations continue into a number of these, it is already clear to all of us that there have been serious failings in how we have acted as an organisation. We must do better, and we must be better."

Mr Danker could not be reached immediately for comment.

On Tuesday the CBI announced measures to "rebuild trust" after members including Marks & Spencer and Rolls-Royce expressed concerns about the misconduct scandal and demanded assurances it was being taken seriously.

Jill Ader, a CBI Board member and recent global chairman of leadership advisory firm Egon Zehnder, will oversee a review of the organisation's culture, governance and processes, while a new chief people officer role is being created to report to the board on workplace conduct.

At the same time, the CBI said a confidential channel set up for staff to report concerns and complaints about workplace conduct would be made permanent.

The appointment of Rain Newton-Smith, a CBI veteran, will be regarded as an attempt to calm nerves.

Until recently, she had served as the CBI's chief economist and was a familiar face at industry conferences.

She left the organisation in March to take on a new job as managing director of sustainability strategy and policy at Barclays, and returns as director general at a time when the organisation is battling one of the biggest crises in its history.

Ms Newton-Smith's CV includes a five-year stint at Oxford Economics, where she was head of emerging markets and the lead expert on China.

Before that, she also worked on international forecasts for the Bank of England's monetary policy committee and was at one stage seconded to the International Monetary Fund in Washington DC to advise the fund's UK executive director.

She holds a masters degree in economics from the London School of Economics and studied philosophy and economics at Oxford University.

Brian McBride, the CBI's president, said: "I am delighted that Rain has agreed to return to the CBI as our new director-general. She has a stellar record as a leader and advocate for UK business with all it can contribute to the economy and society."