Why should SMEs sign up for the Better Business Act?

At a time where more than three-quarters of people in the UK want businesses to be legally responsible for their impact on the environment and society, there is a growing movement to amend Section 172 of the Companies Act, to make sure that businesses are aware of their legal responsibilities to the planet and their wider communities, whilst also being commercially viable and profit making.

The Better Business Act organisation is building a coalition of leaders from across all sectors in the UK to call on the government to make amendments to the relevant part of the Companies Act, to particularly focus on the following areas:

Aligning interests – at the moment, businesses have a choice whether to take decisions that factor in the impact on the climate or on society. Many businesses are driven by the demands of shareholders, who often place profit higher than impact. A change to the Companies Act would mean that everyone has the same responsibilities and so shareholders and operational staff will be working towards the same legal and moral requirements.

Empowering directors – rather than being pulled in several directions, directors would be able to take clear decisions that meet the new legal requirements and bring commercial benefits to the business.

Changes in reporting – businesses must report regularly on their impact on the planet, on people and on their business performance. This will help shareholders, employees and communities have a clear measure of how companies are performing across the board.

Removing the option to do nothing – in order for businesses to make a big difference, we need to remove the option to do nothing. All businesses in the UK will be equally affected and required to make – and stick to – the same commitments.

How to show your support

The climate crisis means that issues like required actions and reporting aren’t going away. In fact, it’s more likely than ever that governments will start to put these requirements in place to help them meet stated targets.

So, if you’re already thinking about how your business can have a more positive impact, why not sign up to support the Better Business Act? You’ll be joining a fast-growing number of organisations who think that all businesses should be legally required to do better, and you’ll be able to get ahead of the game – which in itself can help your business and your profits grow.

You can sign up to the Better Business Act here – and you can arrange a chat with us to find out more about how being more sustainable can boost your business success.

Please note: This is not meant to constitute professional advice. It is generic guidance only and things may have changed since it was written –please always seek specific & tailored advice for your circumstances.v