What is the Better Business Act?
The Better Business Act is the flagship policy campaign from B Lab UK. Our mission is simple but transformative: to amend UK law so that every company aligns the interests of shareholders with those of wider society and the environment.
The law hasn’t caught up with modern business.
Current UK company law prioritises shareholder returns. Directors can consider employees, communities and the environment, but they don’t have to, yet expectations of business have fundamentally changed:
* 77% of the UK public believe businesses should have a legal responsibility to people and planet alongside profit.
* 62% of company directors say businesses should not exist solely to make money.
* Two-thirds of the public believe business should step up where government falls short.
Why now? The case for change
The UK faces economic stagnation, low public trust, and political volatility. The government must focus on growth that genuinely improves lives, not just short-term gains.
Research shows the economic benefits of purpose-led business:
* £149bn boost to UK GDP per year
* Seven-fold increase in R&D expenditure
* £86bn increase in capital investment
* £5.3bn pay rise for the lowest paid (worth £44/week)
Stakeholder governance works. UK B Corps have spent a decade proving this:
- Resilience: With above average productivity, stronger growth, and higher investment, UK B Corps are showing that long term value creation is strongest when purpose sits alongside profit.
- Growth: B Corps’ turnover growth is almost 7 times higher than all UK SMEs, proving that purpose-driven businesses are scaling faster than the market.
- Jobs: While overall UK SMEs grew headcount by only 2%, UK SME B Corps achieved 11% employee growth, highlighting their contribution to local jobs and economic resilience.
- Investment: Over the past decade, UK B Corps have attracted a median of £1.5 million in growth funding from external investors, 18% more than comparable UK businesses, demonstrating strong investor confidence in sustainable business models.
Our four principles for a future-fit economy
We aim to see these principles reflected in an amended Section 172 of the Companies Act:
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.
The coalition
Over 3,000 businesses and organisations support the campaign. It is co-chaired by Mary Portas OBE and Douglas Lamont, and backed by a growing network of business leaders driving change across all sectors and regions of the UK.
Campaign milestones:
- 2021: Campaign launch & Virgin joins the coalition
- 2022: Mary Portas OBE joins as co-chair & mass lobby in Parliament
- 2023: Better Business Day Westminster takeover & launch of The Purpose Dividend report with Demos
- 2024: Lib Dems & Greens include BBA in manifestos; campaign film launch – The Pitch for Better Business
- 2025: MPs visit coalition businesses; Private Members’ Bill aligned; record MP attendance on Better Business Day
How you can support change
Sign up
Join 3,000+ businesses & organisations who back the act. Sign up now – head to our website.
Speak up
Share on social media, include in newsletters & brief your teams. Access copy, templates & assets.
Engage MPs
Write to your MP. Meet them in-person. Tell them why this change matters. Access our MP engagement toolkit. Show them why better business law matters locally. Access our toolkit here.
Invite others
Share this PDF with peers, partners & suppliers. The more voices behind us, the harder it is for politicians to ignore.
The moment is now. The Better Business Act is the solution for good growth: a bold opportunity to align profit with purpose and ensure companies take responsibility for their impact on society and the environment.
Sign up. Speak up. Step up. Keep an eye on your inbox or sign up for more campaign updates.