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The Better Business Act – for a cleaner, greener, fairer future for all

By April 14, 2022No Comments

Britain’s business leaders are being urged to ask the government to amend Section 172 of the Companies Act to ensure businesses, whatever their size, takes ownership of its social and environmental impact and are legally responsible for benefiting workers, customers, communities and the environment while delivering profit.

The objective is to amended Section 172 of the Companies Act to reflect these four principles: –

  • Aligned interests

The interests of shareholders are now advanced alongside those of wider society and the environment. This establishes a new principle of fiduciary duty within section 172 of the Companies Act

  • Empowering Directors

The change must empower directors to exercise their judgement in weighing up and advancing the interests of all stakeholders

  • Default Change

This change must apply to all business by default. It must no longer be optional to benefit wider stakeholders beyond shareholders

  • Reflected in reporting

Following this change businesses must report on how they balance people, planet and profit in a strategic report of impact report, where one is currently required.

The changes will mean it will no longer be a choice to align the long-term interests of people, planet, and profit.

For more information click here

Join the BBA coalition for Better Business Day in Parliament on 20th April 2022.

This is an opportunity for businesses to meet their MP and to encourage them to get behind the change, and to hear from the BBA Co-Chairs and meet Coalition Members.

Register interest here

Ben Kemp

About Ben Kemp