Better Business Act Marks 20 Years of Companies Act with Call for Urgent Reform
Tuesday 9 June, London—Nearly two decades after the Companies Act was introduced, a growing coalition of businesses is questioning whether the UK’s corporate governance framework is still fit for purpose, or whether a simple update could help future-proof the economy for long-term growth.
Marking Better Business Day 2026 on 9 June, the Better Business Act campaign—now backed by over 3,000 organisations including Virgin, Iceland, Tony’s Chocolonely, and the Institute of Directors—is bringing business leaders and policymakers to Westminster to explore how the UK can build a more resilient, trusted, and competitive economy through better business governance.
The Companies Act was written in 2006, before the global financial crash, Brexit, COVID-19, the rise of Environmental, Social & Governance (ESG) standards, the digital revolution, and today’s erosion of public trust in institutions. Yet the core principles underpinning UK corporate governance remain largely unchanged, with directors still expected to prioritise shareholder interests above all else.
In the years since, a series of high-profile business failures, from Carillion’s collapse to P&O Ferries’ mass firings and Thames Water’s environmental harm, have intensified scrutiny over whether short-term incentives are creating the types of businesses the UK wants and needs.
Momentum is building behind a solution. The Better Business Act campaign is calling on the Government to amend Section 172 of the Companies Act so directors are legally required to balance the interests of shareholders with those of employees, customers, communities, and the environment.
Supporters argue that forward-thinking businesses already operate this way, and that the law should catch up. Far from being anti-business, proponents frame the debate as a question of economic competitiveness and long-term resilience. The rapid growth of the B Corp movement is increasingly cited as evidence that purpose-led business can also drive commercial success.
Today, more than 2,900 UK businesses are certified B Corps. Research shows they outperform ordinary SMEs across a range of indicators, including:
20% turnover growth, compared to 3% among ordinary SMEs
11% employee growth, versus 2% among peers
93% remained active after COVID-19, compared to 84% of UK businesses overall
£1.5 million in growth funding secured on average, 18% higher than the national average
Against a backdrop of sluggish productivity growth, declining public trust, and increasing pressure on business to demonstrate social value, the question is no longer whether stakeholder-governed business works, but whether UK law can evolve quick enough to make that approach the norm.
Better Business Day 2026 will put the Better Business Act firmly on the Government’s agenda, positioning it as an opportunity to strengthen the UK’s competitive advantage and cement its role as a global leader in the 21st-century economy.
Mary Portas, retail expert, founder of Portas, and co-chair of the Better Business Act, says: “There’s a growing disconnect between what people expect from business and what our system still rewards. We see it in our high streets everyday: people want businesses that do the right thing, support their communities, and create lasting value. It’s time to close that gap. Public trust won’t come back until the rules catch up with reality.”
Douglas Lamont, CEO of Tony’s Chocolonely and co-chair of the Better Business Act, says: “Governance isn’t a side issue, it’s central to driving mindset and culture in the boardroom. With business performance central to our economy, the right governance doesn’t just shape companies, it shapes our society.
At Tony's, we've shown that building purpose into governance through long-term commitments to cocoa farmers and greater transparency, can drive growth, innovation, and commercial success. Now it's time to raise the floor for all. Amending Section 172 isn’t about constraining business; it’s about modernising the rules so every director can create long-term value with confidence.”
Chris Turner, CEO of B Lab UK and campaign director of the Better Business Act, says: “This is ultimately about how the UK designs its economy for the future. B Corps have already proven what’s possible. We can’t afford to wait another 20 years. The evidence is there, the model exists, and the case is proven. Now we need action. Join the coalition and call on your MP to back the Better Business Act.”
Simon Opher, Labour MP for Stroud, says: “As the country asks how we deliver growth that people actually feel in their communities, the Better Business Act should be part of the answer. When company law encourages directors to focus too narrowly on short-term returns, it can have real consequences for jobs, communities, and public trust.
There is clearly a growing consensus from business, investors, and civil society that Section 172 needs updating. This is a simple reform that would help ensure the economy works for people and places, as well as shareholders, and it is one the Government should take seriously.”
ENDS
For more information, please contact: media@bcorporation.uk
About the Better Business Act: The Better Business Act is the flagship policy campaign from B Lab UK. Its 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. Find out more here: https://betterbusinessact.org
About B Lab UK: B Lab UK is part of the non-profit network transforming the global economy to benefit all people, communities and the planet. Its 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 here: https://bcorporation.uk/
About B Corp Certification: Certified B Corporations, or B Corps, are companies verified as meeting standards for social and environmental performance, transparency, and accountability. To date, the B Corp community spans over 10,000 B Corps across more than 100 countries and over 160 industries, collectively employing more than 1 million people. The UK hosts the largest community in the world with over 2,700 B Corps. To learn more, visit www.bcorporation.net