Transparent & Authentic Communication
June 14, 2024
In the UK, a coalition of businesses are working together to advocate for a change in national legislation that would ensure that every company has to align their interests with those of wider society and the environment. Called the Better Business Act, this change to Section 172 of the Companies Act would require businesses to align with long term interests of people, planet, and profit, meaning they would be legally responsible for benefiting workers, customers, communities, and the environment while delivering profit. The four key principles in the Better Business Act are:
- Aligned interests: interests of shareholders will advance of those of wider society and the environment
- Empowering directors: directors will be empowered to exercise their judgement in understanding and advancing the interests of all stakeholders
- Default change: the law will apply to all businesses by default meaning it would no longer be optional to benefit wider stakeholders beyond shareholders
- Reflected in reporting: businesses will have to report on how they balance people, planet, and profit in a strategic or impact report, where one is currently required
Who is Involved?
The strategy and concept for the Better Business Act were initiated by B Lab UK. B Lab UK is a country partner of the global B Lab organisation that helps to promote their mission to transform the global economy to benefit all people, communities, and the planet. B Lab UK was founded in 2006 with an aim of inspiring and enabling people to use business as a force for good. One way in which they are working to achieve this is through concept and strategy creation for the Better Business Act, which aligns directly with B Corp values. To learn more about B Corp, please see this blog!
There are currently over 3000 businesses that are part of the coalition supporting the adoption of the Better Business Act. These businesses range across all industries and sizes but all have the same goal of promoting business as a force for good and centering stakeholders, society, and the environment in their decision making. Examples of signatories include Patagonia, Danone, Oddbox, Pukka and The Body Shop. As a coalition, the businesses champion the adoption of the Better Business Act in many different ways, including visiting Westminster to engage with their MPs, while putting the principles of the act into action in their own organisations.
Why is the Better Business Act Important
Businesses have the potential to play a large role in the fight against climate change and in ensuring equitable, positive outcomes for all communities and members of society. By committing to benefiting workers, customers, communities, and the environment, while still delivering profit, we can take a critical step towards a global economy that benefits all people, communities, and the planet. With the addition of a reporting requirement, businesses can be held accountable for their actions and impacts through transparent communication with all stakeholders.
Currently, businesses can engage with the Better Business Act and its principles on a voluntary basis. There are over 3000 businesses that have chosen to do this, showing their commitment to having a positive impact. However, there are thousands of businesses that have not yet made this decision voluntarily. If the Better Business Act were to be adopted into law, all companies would have to comply and would have to align their interests with wider society and the environment. This would have a substantial positive impact in many different ways, including through increased communication of current impacts, actions, and initiatives. Through its implementation, the Better Business Act would help to create a cleaner, greener, fairer future for all.
How to Get Involved
If you are a business in the UK and are interested in getting involved with the Better Business Act, the first step is to check out their website and learn more about their work and goals. You can sign up to get involved through a form on their website if you are ready to take action and to follow these five requirements:
- Support the four key principles of the Better Business Act
- Aligned interests
- Empowering directors
- Default change
- Reflected in reporting
- List your company name and logo on the Better Business Act website
- Advocate for the Better Business Act and participate in campaign activities
- Ensure your company doesn’t undertake any corporate activities that would undermine the objectives of the campaign
- Act and communicate in a non party political manner
Whether you are already on your sustainability journey or are just starting out, joining the Better Business Act Coalition will show your commitment to change. On top of this, you will be part of a like-minded community that is working towards the same goals you are, meaning there will be opportunities for knowledge sharing, helping you to progress on your sustainability journey while supporting the Better Business Act.
If You Are Already Involved
Once you have signed up there are many ways to help make progress towards implementation and to use the BBA to help your business. Make sure you stay up to date on the BBA, its progress, and any related events through their social media and their website. Staying involved will help you to learn as much as possible, make progress towards your own sustainability goals, and to keep the movement for the adoption of the BBA going!
Also, make sure to communicate your commitment to the BBA and all of your sustainability goals to both internal and external stakeholders. Bring your team on the journey with you and discuss the BBA and why you are engaging with sustainability. Make sure to share progress regularly and to provide a way for team members to share their ideas and thoughts. With external stakeholders, like customers, investors, or partners, it is just as important to be transparent about your journey. Share your commitment to the BBA on your website, social media, and through sustainability reports regularly to show progress and continued action.
At ENSO, we work to help you create strong sustainability strategies, implement actions, and communicate your journey and engagement with initiatives like the BBA. Communication is a key part of the journey, as it helps you to inspire others to take action and turn sustainability into your competitive advantage.