Sherrington is proud to have pledged our support for The Better Business Act this week. The act is a business-led campaign, supported by over 1,000 UK businesses, to force UK government to mandate responsible business practice by holding directors to account via an amendment to Section 172 of the Companies Act.
In order to make businesses legally obliged to align their long-term interests equally towards people, planet and profit, the BBA will focus on four main principles:
1. Aligned Interests: The interests of shareholders are now advanced alongside those of wider society and the environment. This establishes a new principle of fiduciary duty within Section 172 of the Companies Act.
2. Empowering Directors: This change must empower directors to exercise their judgement in weighing up and advancing the interests of all stakeholders.
3. Default Change: This change must apply to all businesses by default. It must no longer be optional to benefit wider stakeholders beyond shareholders.
4. Reflected in Reporting: Following this change, businesses must report on how they balance people, planet and profit in a strategic report or impact report, where one is currently required.
On 20th April this year, The BBA will be one year old and will be taking the campaign to parliament for 'Better Business Day', an event organised by BBA members as a key campaign moment that will build momentum before the Government lays out its legislative agenda for the year ahead in the Queen’s Speech and Sherrington Associates will be there!
This event is open to all supporters of the Better Business Act as well as parliamentarians, business leaders and individuals who are interested in supporting the campaign. A small change in the law will make a big change in the world. It will allow businesses to make decisions in all of our long term interests, helping to create a fairer, greener future for everyone.
You can learn more about The Better Business Act here.
