B Lab UK announced that there are now more than 3,000 members in the Better Business Act Coalition, a tenfold rise since the campaign was launched in 2021.
This milestone is a call to action for businesses to be a solution in a system where short-term gain overshadows long-term responsibility.
The Better Business Act offers all UK businesses the opportunity to work together and create a path towards a sustainable and resilient economy. The Better Business Act campaign calls for an amendment to Section 172 of the Companies Act. This would give all UK businesses freedom to plan for the future, aligning the interests of shareholders with those of customers, employees, local communities, and the environment.
The UK government is stepping up its efforts to partner strategically with businesses. It has drafted an update to the Audit Reform & Corporate Governance Bill, and corporate governance reform was one of the Business & Trade Committee’s priorities.
The UK’s current law encourages companies to operate in a shareholder-first environment, meaning that company directors often put profit before people and the planet. The diverse and rapidly expanding coalition of the Better Business Act highlights the need for business leaders to adopt a multi-stakeholder strategy in order to create a future-fitted economy that benefits all.
The Better Business Act is now supported by companies from 15 different sectors, including finance, technology, insurance, science, and communications. Every region in the UK is represented.
The coalition is made up of a mixture of high-street companies and SMEs as well as local businesses and SMEs. Iceland, Tony’s Chocolonely and Oddbox are notable businesses. Other notable companies include Virgin Group, Little Moons World of Books, Gu Divine Chocolate, Hymans Robertson and ELEMIS.
Stakeholder-governed businesses are already thriving in thousands of UK-based companies. The UK hosts the world’s largest B Corp community, which outperforms ordinary businesses in multiple metrics. These include revenue growth – small and medium sized UK B Corps saw a 23,2% increase in turnover compared to a national average of 16,8% – talent acquisition, and resilience in uncertain economic times for many UK companies.
The UK has become increasingly committed to purpose-driven business over the past few years. Public support for this act reflects the desire to go further. Three-quarters of people (76%) believe that business law must be changed to ensure that companies are legally obligated to consider both people and planet along with profit.
“B Corps continue to show that businesses can be powerful problem solvers and innovators. The government must meet this moment of crossroads and raise the floor of all companies,” stated Chris Turner. He is the CEO of B Lab UK and the Campaign Director for the Better Business Act. B Lab UK’s flagship campaign.
The Better Business Act is a great opportunity for UK’s future. It allows businesses to achieve long-term sustainable growth without compromising people or the environment.
Turner continued, “The growing coalition of 300 businesses to 3,000 in only three years is a testament to the changing mindset among business leaders who believe that ‘business is as usual’ doesn’t work and we must challenge the status quo.” The Better Business Act gives us the chance to unleash the full potential of businesses at a time where society needs them more than ever .”
Tessa Clarke said that
“At Olio we have always believed business can – and must – be a force of good. We’re proud of our support for the Better Business Act, which is backed by 3,000 organisations.
The UK has for too long framed profit and purpose as a tradeoff. This is a false dichotomy. In reality, placing purpose at the center of business leads to growth, not only for companies but also for the entire economy.
We have seen first-hand how our commitment to purpose helped us attract customers, retain talent, and raise more than $50 million in funding from investors who are concerned about both return and impact.
Purpose is no longer a luxury in a world of values-driven consumers, employees and capital. It’s now a business imperative. It will help us achieve the sustainable economic growth that we desperately need .”
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