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The forthcoming election presents a significant opportunity to rethink the role of business in society, according to Chris Turner, campaign director of the Better Business Act.
Speaking to a Barbican audience during a panel event celebrating the third Better Business Day, Turner emphasised the potential for the Better Business Act to fundamentally change how firms engage with their stakeholders.
The Better Business Act seeks to amend Section 172 of the Companies Act, which currently outlines the responsibilities of company directors. The proposed changes aim to empower directors to make decisions that consider the interests of people, the planet, and profit, rather than focusing solely on profit.
Holly Branson, Virgin’s chief purpose officer and a long-time supporter of the Better Business Act, spoke about the positive impact of embedding purpose within her multi-billion pound business. She highlighted the implementation of a “purpose filter” at Virgin, ensuring that only decisions aligned with their purpose proceed.
Branson was joined on the panel by ethical consumer and fashion campaigner Safia Minney, and Josephine Phillips, founder and CEO of Sojo — a company providing easy repair solutions for pre-owned items. Phillips noted that changes to the Companies Act would contribute to a cultural shift in businesses, reflecting the global challenges faced today.
New research by B Lab UK, the organisation behind the B Corp movement and the Better Business Act, shows strong public support for the proposed changes. According to the data, 76% of the UK public believe that company law should be amended to give businesses a legal responsibility to prioritize people and the planet alongside making a profit.
The Better Business Act also enjoys robust support from the business community, with nearly 3,000 organisations backing the initiative, including Tony’s Chocolonely, Iceland, the Institute of Directors, and Lucky Saint.