A growing number of UK businesses are supporting a call for legal reform as the Better Business Act (BBA) coalition reaches 3,000 members. This milestone, announced by B Lab UK, marks a tenfold increase in backing since the campaign launched in 2021.
The coalition is advocating for an amendment to Section 172 of the Companies Act to give businesses the freedom to align shareholder interests with those of employees, customers, communities and the environment. The proposal comes at a time of economic uncertainty and corporate governance scandals, including those involving Royal Mail and Thames Water, which have raised concerns about short-term profit-driven decision-making.
The UK government has signalled its intention to strengthen corporate governance through the forthcoming Audit Reform & Corporate Governance Bill. The BBA coalition argues that existing laws encourage a model of shareholder primacy, where financial returns take precedence over broader social and environmental responsibilities.
Businesses Across Sectors Join the Better Business Act
The Better Business Act has attracted support from companies across more than 15 sectors, including technology, finance, insurance, science and communications. The coalition includes a diverse mix of SMEs, high-street brands and publicly listed firms. Non-profits and industry bodies, including ShareAction, the Institute of Directors and the RSPB, have also pledged their support.
The UK has become a hub for purpose-driven businesses, with the country now hosting the largest B Corp community globally. B Corps—companies committed to meeting high social and environmental performance standards—are outperforming traditional businesses across multiple metrics. Small and medium-sized UK B Corps have experienced a 23.2% increase in turnover, compared to a national average of 16.8%. Supporters argue that embedding purpose in business not only strengthens resilience but also enhances talent acquisition and customer trust.
Public and Business Leaders Support Change
Public support for corporate governance reform is growing, with 76% of people in the UK believing that businesses should have a legal responsibility to consider people and the planet alongside profit.
Chris Turner, CEO of B Lab UK and Campaign Director of the Better Business Act, said, “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. 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 added that the rapid expansion of the coalition, from 300 to 3,000 businesses in three years, reflects a shift in mindset among business leaders. He described the BBA as a chance to challenge the status quo and position UK businesses as leaders in responsible economic growth.
Tessa Clarke, Co-Founder and CEO of Olio, echoed this sentiment, saying, “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.”
She highlighted that companies that integrate purpose into their operations attract customers, retain top talent and secure investment. Clarke argued that in a landscape where consumers, employees and investors increasingly prioritise values-driven businesses, purpose is no longer a luxury but a commercial imperative.
