Better Business Act

August 2024

We are supporting the Better Business Act because it would change how UK businesses make decisions, not just how they talk about them.

The campaign, led by B Lab UK, calls on government to make a targeted update to Section 172 of the Companies Act. The aim is simple, that company directors should be legally required to prioritise people and the planet alongside profit, rather than treating social and environmental responsibility as optional when pressure is applied.

At present, the language allows too much room for interpretation, creating a gap between intent and action. The Better Business Act tightens that gap and makes impact part of a director’s duty.

This matters at a practical level with clearer legal accountability changes how decisions are made around pay, working conditions, suppliers, environmental impact and long-term risk. It also changes conversations with shareholders. Investing in people and the planet starts being something that is expected.

Since launching in April 2021, the Better Business Act has gained cross-party support and brought together more than 2,600 organisations. With a general election approaching, this is a moment for businesses to be visible about the standards they want the next government to uphold.

People before profit, with consequences

Most customers already expect businesses to treat people fairly, reduce harm to the environment and contribute positively to the communities they operate in. The Better Business Act makes those expectations enforceable.

This is not anti-profit, it’s about recognising that short-term financial gain should not come at the expense of fair wages, safe working conditions or environmental responsibility. Businesses that look after their people tend to retain talent.

Organisations that reduce environmental harm protect the systems they rely on, and when behaviour matches intent trust builds, which has positive has commercial value.

For example, if you knew the flat white you just bought came from a business that treated its farmers well and cared about the environment, you would probably enjoy it a little bit more.

Why this matters to us

Digitom achieved B Corp status in 2023. This means we have legally committed to balancing profit with positive impact, and that commitment is written into our articles of association at Companies House.

Our approach to work reflects the same thinking. We create communications, recruitment and learning and development films that help organisations communicate with clarity, empathy and purpose. We work with clients who want to demonstrate responsibility through action.

Supporting the Better Business Act is consistent with how we already operate. It would reduce the gap between businesses that take responsibility seriously and those that treat it as marketing. It would also help level the playing field, so doing the right thing is no longer a competitive disadvantage.

You don’t need to be a B Corp to support the Better Business Act. Any business can add its voice.