A major business-led campaign advocating for changes in UK company law has reached a crucial milestone, with 3,000 businesses now backing the Better Business Act. The initiative, led by B Lab UK, is gaining momentum as it seeks to reform corporate governance in the country.
The campaign aims to amend Section 172 of the Companies Act, requiring businesses to align shareholder interests with those of employees, customers, communities, and the environment. This shift from shareholder primacy to a multi-stakeholder model is intended to promote long-term, sustainable growth.
Since its launch in 2021, the campaign’s support has expanded tenfold, highlighting a growing demand from business leaders for a system that balances profit with social and environmental responsibility.
Corporate Governance Reform on the Horizon
The announcement comes at a time when the government is preparing to update the Audit Reform & Corporate Governance Bill. Business governance reforms have become a priority for the Business & Trade Committee, increasing the relevance of the Better Business Act’s proposals.
“The Better Business Act presents an opportunity for the UK’s future,” said Chris Turner, CEO of B Lab UK and campaign director for the initiative. “The growth of our coalition from 300 to 3,000 businesses in just three years is proof that ‘business as usual’ isn’t working. We must challenge the status quo.”
Broad Support Across Industries
The coalition includes companies from more than 15 sectors, ranging from SMEs to major brands such as Virgin Group, Iceland, Tony’s Chocolonely, Danone, Bloom & Wild, Olio, and The Guardian. Trade bodies and nonprofits, including ShareAction, RSPB, and the Institute of Directors, have also joined the movement.
Public sentiment strongly supports the initiative, with research showing that 76% of people believe the law should require companies to consider social and environmental impact alongside financial returns.
“Putting purpose at the heart of business drives growth,” said Tessa Clarke, Co-Founder and CEO of Olio. “We’ve seen it firsthand—purpose has helped us attract customers, retain top talent, and secure over $50 million from impact-focused investors. This isn’t just a moral choice; it’s a commercial necessity.”
The Rise of B Corp Businesses
The UK now has the largest B Corp community globally, with certified businesses outperforming the market. UK B Corp SMEs reported revenue growth of 23.2%, compared to the national average of 16.8%. These figures strengthen the case for expanding stakeholder governance across the broader business landscape.
As corporate scandals and rising inequality continue to erode public trust, advocates of the Better Business Act argue that now is the time for government intervention.
“B Corps continue to raise the ceiling,” said Turner. “Now the government must raise the floor.”
With growing cross-sector support and 3,000 businesses rallying behind the cause, pressure is mounting on policymakers to implement a framework that recognizes purpose and profit as complementary forces driving the future of UK business.
