About The Better Business Act
The story
Change the UK law to ensure every company in the UK aligns their interests with those of wider society and the environment.
The act
Our objective is to see these four principles reflected in an amended Section 172 of the Companies Act.
Your role
Together, we will ask the government to make this small change in the law, which will make a big change in the world, helping to create a fairer, greener future for everybody.
The Story
The climate emergency and social inequality are profound and pressing problems, thrown into sharp relief by the COVID crisis, that can only be solved if we harness the enormous potential of entrepreneurs, innovation and enterprise.
The failure to align the interests of shareholders with those of wider society and the environment has contributed to a set of enormous challenges that threaten peoples’ health, wealth and the natural world.
77% of people in the UK want businesses to be legally responsible for their impact
Our research shows that UK voters and consumers want business to do better. Three quarters of the UK public think business has a responsibility to protect the environment and the majority favour brands that do good in the world.
The Better Business Act will transform the way we do business, so that every single company in the UK, whether big or small, takes ownership of its social and environmental impact.
Freedom for business leaders to act in everyone’s interests
The best way to do this is to change the law that governs how businesses act. It can no longer be a choice to align the long-term interests of people, planet and profit. Businesses across the UK have proven this as a model for sustainable growth that drives innovation and entrepreneurship.
That’s why we are urging all of Britain’s business leaders to call on the government to amend Section 172 of the Companies Act to ensure businesses are legally responsible for benefiting workers, customers, communities and the environment while delivering profit.
To achieve this we are bringing together a broad and growing coalition of leaders from across all sectors and all regions of the UK to help deliver this new contract between business and society.
With your support we can and we will act to make sure that every business plays its part in creating a cleaner, greener, fairer future for all.
The Act
Our objective is to see these four principles reflected in an amended Section 172 of the Companies Act.
It can no longer be a choice to align the long-term interests of people, planet and profit. The Better Business Act will transform the way we do business, so that every single company in the UK takes ownership of its social and environmental impact.
Aligned Interests
The interests of shareholders are now advanced alongside those of wider society and the environment. This establishes a new principle of fiduciary duty within Section 172 of the Companies Act.
Empowering directors
This change must empower directors to exercise their judgement in weighing up and advancing the interests of all stakeholders.
Default change
This change must apply to all businesses by default. It must no longer be optional to benefit wider stakeholders beyond shareholders.
Reflected in reporting
Following this change, businesses must report on how they balance people, planet and profit in a strategic report or impact report, where one is currently required.
Britain needs business at its best
Over 3,000 businesses and organisations are demanding that company directors align social and environmental impact with shareholder returns.