Business-led campaign calling for the government to act on corporate governance reform gains momentum
LONDON, 2nd April: A growing number of businesses are backing a change to UK company law as B Lab UK announces there are now 3,000 members of the Better Business Act coalition, marking a tenfold increase since the campaign’s launch in 2021.
With social inequality widening amid economic uncertainty and corporate governance scandals like Royal Mail and Thames Water undermining public confidence in business — this milestone marks an urgent call for business to become a solution to a system that currently prioritises short-term gains over long-term responsibility.
The Better Business Act presents an opportunity for all UK businesses to unite behind and build a trajectory towards a more sustainable and resilient economy. The campaign is calling for an amendment to Section 172 of the Companies Act, giving all UK businesses the freedom to think for the future by aligning shareholder interests with those of employees, customers, local communities and the environment.
The news comes as the UK government ramps up its efforts to strategically partner with business, drafting an update to the Audit Reform & Corporate Governance Bill and setting out corporate governance reform as one of the priorities of the Business & Trade Committee.
UK law currently encourages businesses to operate under a legal regime of shareholder primacy, which means company directors too often prioritise profit over people and the planet. The Better Business Act’s diverse and rapidly growing coalition highlights the demand from business leaders for a multi-stakeholder approach, creating a future-fit economy that works in the interests of all.
Companies backing the Better Business Act now span over 15 sectors, including technology, finance, insurance, science and communications. Geographically, every region of the UK is represented.
The coalition comprises a mix of local firms and SMEs, as well as high-street brands and publicly listed companies. Notable businesses include Iceland, Tony’s Chocolonely, Oddbox, Olio, Bloom & Wild, The Guardian, Bidfood, Charlie Bigham’s, HumanForest, Danone, Freuds, Virgin Group, Little Moons, World of Books, Gü, Divine Chocolate, Hymans Robertson, ELEMIS as well as non-profits and membership organisations like ShareAction, Institute of Directors and RSPB.
Thousands of businesses across the UK already provide a thriving proof-of-concept for stakeholder-governed business. The UK now hosts the largest B Corp community in the world which is outperforming ordinary businesses on multiple metrics, including revenue growth — small and medium-sized UK B Corps experienced a 23.2% increase in turnover, compared to the national average of 16.8% — talent acquisition and resilience through uncertain economic headways for many UK businesses.
As the UK has increasingly embraced purpose-led business in recent years, public support for the act has reflected demand to go even further; three-quarters (76%) of people believe business law needs to change to ensure companies have a legal responsibility to consider people and the planet alongside profit.
“While B Corps continue to raise the ceiling, showing that businesses can be powerful innovators and problem solvers, the government must meet this crossroads moment and raise the floor for all companies,” said Chris Turner, CEO of B Lab UK, the charity behind the UK B Corp movement, and Campaign Director of the Better Business Act, B Lab UK’s flagship campaign.
“The Better Business Act presents an opportunity for the UK's future, enabling businesses to accelerate long-term, sustainable growth that doesn't come at the expense of people and the planet.
Turner continues, “The growth of the coalition from 300 to 3,000 businesses in just three years is testament to the increasing shift in mindset from business leaders that ‘business as usual’ isn’t working and we need to challenge the status quo. The Better Business Act is our chance to harness the full potential of business at a time when society, more than ever, needs business at its best.”
Tessa Clarke, Co-Founder and CEO of OLIO, said:
“At Olio, we’ve always believed that business can — and must — be a force for good. That’s why we’re proud to stand with 3,000 organisations behind the Better Business Act.
For too long, the UK has framed purpose and profit as a trade-off. But that’s a false dichotomy. In reality, putting purpose at the heart of business unleashes growth — not just for individual companies, but for the economy as a whole.
We’ve seen this firsthand: our commitment to purpose has helped us win customers, retain top talent, and raise over $50 million from investors who care about both returns and impact.
In a world where consumers, employees, and capital are increasingly values-driven, purpose isn’t a moral luxury — it’s a commercial imperative. Embedding it into the DNA of British business will give us a powerful competitive advantage on the global stage, and help supercharge the sustainable economic growth we so desperately need.”
ENDS
For more information contact:
Will Paxton
william@higginsonstrategy.com
(+44) 7861 517518
Notes to Editor
About Better Business Act
The Better Business Act is a proposed amendment to Section 172 of the Companies Act that would legally require all UK companies to take responsibility for their impact on people and the planet alongside their responsibility to shareholders.
The campaign seeks to transform the way business operates by making directors legally responsible for aligning shareholder interests with wider stakeholder concerns including employees, customers, communities, and the environment.
Launched in 2022 by B Lab UK, the campaign has grown from 300 to 3,000 member organizations in just three years, representing businesses across 15 sectors of the UK economy. To learn more visit: https://betterbusinessact.org
About B Lab
B Lab is transforming the global economy to benefit all people, communities, and the planet. A leader in economic systems change, our global network creates standards, policies, tools, and programs for business, and we certify companies — known as B Corps — who are leading the way. To date, our community includes 900,000 workers in over 9,500 B Corps across 102 countries and 160 industries.
To learn more and join the movement, visit www.bcorporation.net.
About B Lab UK
As part of this global non-profit B Network, B Lab UK’s purpose is to redefine success in business through building a community of engaged businesses, raising awareness of the B Corp movement and influencing change in the UK economy. Find out more.
About B Corp Certification
Certified B Corporations, or B Corps, are companies verified by B Lab to meet high standards of social and environmental performance, transparency and accountability. To achieve B Corp Certification, a company must complete the B Impact Assessment, an evaluation of a company’s positive impact, and pass a risk review, an evaluation of a company’s negative impact; change their corporate governance structure to be accountable to all stakeholders, not just shareholders; and exhibit transparency by allowing information about their B Corp Certification performance to be publicly available on their B Corp profile on B Lab’s website. B Corps recertify every three years and once certified, are expected to increase their score over time as they progress towards becoming more equitable, inclusive and regenerative businesses.