Better Business Act

The Better Business Act campaign is lobbying for proposed legislative changes regulating how UK companies are run.   Currently the primary driver is that shareholder returns are the top priority in business, the campaign is proposing that UK business needs a complete reset and that businesses should be run not purely for shareholder profit maximisation but equally for the benefit of wider stakeholders and for a long-term sustainable economy and society. 

The campaign originated in 2021 led by B Corp UK and an original coalition of 650 businesses.   It was co-founded by:

• Mary Portas, known as the Queen of Shops and Managing Director of Portas, a branding & communication agency focused on beauty, fashion & retail;
• Tony Lamont, CEO of Chocolonely (whom was previously at Innocent drinks); and,
• Chris Turner, CEO of B Corp UK.

The purpose is to campaign to Government, individually and collectively, for an amendment to section 172, Companies Act 2006, in four main areas.  The overall focus is to promote the importance of better business with a focus on wider long-term benefits - purpose, people and the planet - known as the triple bottom line.   

The Better Business Act could transform the way we do business, so that every company in the UK, whatever its size, takes active ownership of its social and environmental impact.

The four areas are:

1. Aligned Interests – the interests of shareholders are aligned alongside those of wider society and the environment. This establishes a new principal of Fiduciary Duties within Section 172 of the Companies Act.
2. Empowering Directors – this change will empower directors to exercise their judgement in weighing up and advancing the interests of all stakeholders.
3. Default Change – this change must apply to all businesses by default.  It must no longer be optional to benefit wider stakeholders beyond shareholders.
4. Reflected In Reporting – following this change, businesses must report how they align people, planet and profit in a strategic or impact report where one is required.

Governance supporting the Better Business Act Campaign – the concept and strategy was instigated by B Corp UK, which acts as the secretariat.  B Lab UK is a non-profit formed in 2015, which serves a community of nearly 3,000 B Corp business across the UK – Certified B Corporations, using business as a force for good.  There is a legal advisory group with advisors from companies including Bates Wells, Slaughter and May, The City Law School, Queen Mary University, Oxford University, Shakespeare’s Globe, and Two Rivers Associates Limited. There is also a public affairs advisory group, with representatives from Ellas Kitchen, Britain Thinks, Share Action, Social Enterprise UK and ShareAction.

E³ Consulting joined the Better Business Act community in June 2024.  We are active on an ongoing basis with collaborative and open conversations with clients, business owners, suppliers and stakeholders regarding sustainability and the proposed legislation/Better Business Act campaign.  If you would like to discuss this, please get in touch with Nicky Oliver, Client & Marketing Director, and lend your support to the campaign.

For further information  - https://betterbusinessact.org/