Is Legislation the Best Way to Achieve Stakeholder Capitalism?
This report summarises research carried out by Hogan Lovells, an American-British law firm co-headquartered in London and Washington, DC. and Business in the Community (BITC), in partnership with the Better Business Act campaign (BBA). It outlines how changes to the Companies Act 2006 proposed by the BBA could lead to greater stakeholder accountability for businesses, as well as the barriers to this approach.
Is Legislation the Best Way to Achieve Stakeholder Capitalism? seeks to understand how, and if, business leaders believe the changes proposed by the BBA campaign could empower UK company directors to lead their organisations in creating a cleaner, greener and fairer future for all. Additionally, this report highlights best practice and explores potential concerns about the changes.
About the Better Business Act
The Better Business Act (BBA) is a campaign to amend Section 172 of the Companies Act 2006. Companies would be legally obligated to operate in a manner that benefits their stakeholders, including workers, customers, communities, and the environment, while seeking to deliver profits for shareholders.
What is stakeholder capitalism?
Stakeholder capitalism is a form of capitalism in which companies seek long-term value creation by taking into account the needs of all their stakeholders, and society at large1.
Resources to help you embed stakeholder accountability
BITC is publishing two new resources to help companies understand how they can embed stakeholder accountability through their corporate governance structures.
As well as this report BITC is publishing a toolkit, Stakeholder Capitalism: four tips to futureproof your business, written in partnership with Hogan Lovells. It outlines different methods companies can use to embed stakeholder accountability through various corporate governance structures.
Responsible Business and Strategy
Responsible business is critical to tackling the big issues facing the world. We need businesses to be faster, braver and bolder in their actions.
BITC is working to dramatically increase the pace and scale of responsible business, in order to meet the United Nations’ Global Goals, also known as the Sustainable Development Goals (SDGs).
Whatever issue, ESG (environment, social or governance factor), sustainability topic or specific Global Goal your business is focusing on, we can help your organisation be faster, braver and bolder. We will accelerate your progress to becoming a more responsible business and together create greater positive change.
we can take you further on your responsible business JOURNEY