The past 18 months have pushed a combination of global and social concerns to the forefront including worker’s rights, the climate crisis, and social inequality. The Better Business Act (BBA) coalition is a cohort of business leaders committed to doing business with ethics.
What is the Better Business Act?
The Better business Act is an amendment of the Current Companies Act 2006 Section 172. The BBA will ensure that companies are legally obligated to operate in a manner that benfits their stakeholders. Including employees, customers, communities, and the environment. While seeking to deliver profits for shareholders.
As a result. Under the Current Companies Act 2006 Section 172, directors can consider stakeholders when making decisions. However, the interests of shareholders are the primary focus. The BBA would amend this and make the interests of the stakeholders the primary default position.
What real difference would the BBA make to society, the environment, and company ethics?
Making the interests of stakeholders the primary focus in business puts our society as a whole on a better and more stable path for success. Many companies face instability along their business journey. The BBA will seek to implement a culture of stability in the lives of stakeholders with the hope of influencing stability for businesses themselves. A sustainable business will only be sustained in a sustainable society and environment.
The BBA is a response from businesses taking responsibility for the influence they have on society and the environment. In addition to making stakeholder’s interests primary. The BBA will influence a shift in mindset in the boardroom, encouraging business owners to look beyond just growing their business. But build a company with a legacy and reform the duties of directors to deliver profits with a principled approach.
Will businesses change if the BBA is passed?
As a result. There will be a formalisation of procedure and a reform of culture in the way we as a society do business. Under the BBA, directors will not lose their interest in commercial success otherwise, they would potentially fail. A board would retain its focus on commercial success but, with a more holistic consideration of stakeholder issues and an approach to business with ethics,
Why is &facts joining the coalition of businesses supporting the BBA?
Here at &facts. We consider ourselves among the new generation of businesses that are asking themselves to set and achieve higher standards. By being a part of a BBA coalition of businesses we are actively working towards that. In conclusion, by joining the BBA coalition we believe that the commercial interests of our business go hand-in-hand with considering and understanding the interests and benefits of our stakeholders.