The Purpose Dividend - B Lab UK

The Purpose Dividend

There is huge potential to change our economy for the better. The Purpose Dividend explores how purpose-driven businesses can drive the UK’s economic recovery.

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To solve the economic challenges of our time we need a revolution in business practice.

Certified B Corporations are demonstrating that it’s possible to thrive while doing the right thing for people and the planet. 

Making purpose-led business the default way to run a business in the UK could unleash tens of billions of pounds of capital investment, turbocharge spending on research and development, aid our Net Zero transition, and boost wages for the lowest paid by thousands of pounds a year. This could be made a reality by implementing the Better Business Act, a change to company law that would ensure all businesses are responsible for benefiting workers, customers, communities and the environment while delivering profit.

New research from Demos, supported by B Lab UK explores the impact of purpose-led businesses, not only on their workers, communities and the planet, but on the economy overall.

Summary of findings

The research has found that: 

£149bn boost to the UK GDP per year - a 7% boost to UK GDP 
A seven-fold increase in R&D expenditure - around £116 bn a year
£86bn increase in capital investment - four percentage points higher levels of capital investment as a percentage of our GDP compared to today 
£5.3bn pay rise for the lowest paid - worth £44 a week for the average person on the national minimum wage

If all businesses acted like purpose-led businesses, we would see a significant improvement in the UK’s economic performance.

The Purpose Dividend (29)
The Purpose Dividend Social Kit (1)
The Purpose Dividend (34)
The Purpose Dividend Social Kit

A simple change to the Companies Act could unlock investment, growth and productivity, while creating the right conditions to tackle our 21st century challenges.”

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Chris Turner

Executive Director