The UK public has voted in favour of a law change to ensure companies prioritise people and the planet alongside making a profit.

New research published by B Lab UK has found 76% of the general public believe that the law needs to change to give businesses a legal responsibility to put social and environmental issues on the same footing as profit.

UK law currently requires firms to operate under a legal regime of shareholder primacy, meaning company directors often put profit ahead of the environment and society.

However, a proposed change to Section 172 of the Companies Act would empower company directors to align the interests of shareholders with their employees, customers, local communities and the environment.

Support for the change was highlighted in B Lab's survey, which was released ahead of Better Business Day (16 May), which sees a broad coalition of businesses call to enact the Better Business Act.

When respondents were asked about their biggest single motivator for backing the change, looking after people was at the forefront.

Over a quarter of those polled said the most important reason was to protect employees,

Support for the change spans political preferences with voters across the party divide strongly giving their backing; 85% of Labour supporters, 70% of Conservative supporters, and 89% of both Liberal Democrat and Green Party supporters said they were in favour of the proposed amendment to the law.

When respondents were asked about their biggest single motivator for backing the change, looking after people was at the forefront.

Over a quarter (28%) polled believed the most important reason was to protect employees, with recent developments such as the Post Office scandal highlighting a need for change.

The need to support employees during the cost of living crisis was also highlighted and the fact businesses should have a legal responsibility to protect the environment.

“The data is clear. And so is the cultural mood. The British public are crying out for businesses to make a change and make it their legal right and responsibility to look after people and the planet," Better Business Act chair, Mary Portas said.

"We see this demand across the board. From all parts of the UK. All age ranges. All political persuasions. As we head into the election, it’s a challenge the next government cannot ignore."

Across the UK, Wales is the biggest supporter of the proposed changes; 86% of people polled said they think the law should change.

Meanwhile, almost half of respondents (47%) said that they will only work for companies that show themselves to have a responsibility towards wider stakeholders including their employees, customers, local communities and the environment.

"Thousands of businesses have already prioritised responsible decision-making. It’s only fair that the government now supports every company – big and small – in their journey towards becoming a better business," Portas added.

B Lab executive diretcor and campaign director of the Better Business Act, Chris Turner said:
“It’s been three years since we launched the Better Business Act campaign. In that time, we’ve seen a growing majority of the UK public demand more from the companies they engage with, while leaders of these organisations also recognise that we need to change ‘business as usual’.

"Over 2,500 UK companies from all sectors and of all sizes are now backing the Better Business Act, demonstrating the urgency for the next Government to take action and empower all business leaders to prioritise people and the planet alongside profit.

"During a time when people are battling a cost-of-living crisis, global temperatures are rising and inequality is reaching new heights, updating Section 172 of the Companies Act would ensure that business becomes part of the solution to the social, environmental and economic challenges we face.”

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