3,000 businesses back the Better Business Act

Business-led campaign calling for the government to act on corporate governance reform gains momentum

Home » 3,000 businesses back the Better Business Act

Published: April 3, 2025
This Article was written by: Katie Hill - My Green Pod
B Corp, business, economy, ethical business, policy

0 Shares

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.

Reforming business

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.

Business as a force for good

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 and ELEMIS, as well as non-profits and membership organisations like ShareAction, Institute of Directors and RSPB.

‘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.’

TESSA CLARKE
Co-founder and CEO of Olio

UK embraces purpose

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 with 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.

‘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.

‘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.’

CHRIS TURNER
CEO of B Lab UK, the charity behind the UK B Corp movement, and campaign director of the Better Business Act