New research released today reveals that a significant majority of the UK public – 76% – believe that current laws need to be revised to mandate that businesses prioritise social and environmental responsibilities alongside profit. The findings, conducted by B Lab UK, highlight a growing demand for a shift from the traditional shareholder primacy model, where profit often takes precedence over societal and environmental concerns.
Under the existing legal framework, company directors are primarily obligated to prioritise shareholder interests, which frequently results in profit-driven decisions that may overlook broader impacts on society and the environment. The research, timed to coincide with this year’s Better Business Day on May 16th, underscores widespread public support for the Better Business Act. This proposed amendment to Section 172 of the Companies Act aims to align corporate governance with the interests of employees, customers, local communities, and the environment.
The survey reveals broad political and regional support for the change. Among those surveyed, 85% of Labour supporters, 70% of Conservative supporters, and 89% of both Liberal Democrat and Green Party supporters expressed backing for the legal amendment. The most compelling reasons for this support include the protection of employees (28%), addressing the ongoing cost of living crisis (26%), and ensuring environmental protection (25%).
Wales stands out as the most supportive region, with 86% of respondents there advocating for the law change. The data also indicates a shift in consumer and employee expectations. Nearly half of those surveyed (47%) stated they would only work for companies that demonstrate a commitment to broader stakeholder responsibility. Additionally, 45% said they would only invest in or purchase from companies that act responsibly, suggesting that businesses prioritising people and the planet could enjoy a competitive edge.
Mary Portas, Chair of the Better Business Act and founder of the Portas agency, commented on the findings: “The data is clear, and so is the cultural mood. The British public are demanding that businesses make it a legal obligation to care for people and the planet. This demand spans all demographics and political affiliations. The next government must address this challenge.”
Chris Turner, Campaign Director of the Better Business Act and Executive Director of B Lab UK, emphasised the campaign’s progress: “Since launching the Better Business Act campaign three years ago, we’ve seen growing public demand for businesses to adopt more responsible practices. Over 2,500 UK companies now support the act, highlighting the urgency for the next government to facilitate this shift towards prioritising people and the planet.”
On Better Business Day, B Lab UK will release a new video featuring prominent business leaders discussing their support for the proposed changes. The video includes contributions from Mary Portas, Amy Clarke (Chief Impact Officer of Tribe Impact Capital), Chris Turner, Dr Ateh Jewel (Entrepreneur), Safia Minney (Author and Entrepreneur), and Luke Boase (Founder of Lucky Saint).
For more information about the Better Business Act and to view the video, visit https://betterbusinessact.org/.