Small But Better: Why the Better Business Act Matters For SMEs
We’re proud to support the Better Business Act, a movement to create a legal framework that compels companies to consider the interests of all stakeholders – society, the environment, and shareholders alike.
To ensure that businesses of all sizes don’t just focus on profit but also take responsibility for their impact on people and the planet. To be a true force for good!
What Is The Better Business Act?
The Better Business Act will amend Section 172 of the Companies Act, to require all UK businesses to consider the wider impact of their operations on society and the environment, in addition to profits – across four aspects:
Balanced Interests: The Act mandates that businesses balance shareholder profits with their responsibility to people and the planet. This change is crucial in an era where climate change and social inequalities are more pressing than ever.
Empowering Directors: Directors will have the legal backing to make decisions that benefit all stakeholders, not just shareholders. Enabling more sustainable and ethical business practices.
Default for All: This change would apply to every business, regardless of size, meaning ethical, responsible business practices will no longer be optional. They’ll be the norm.
Transparent Reporting: Companies will need to report on how they balance profit with purpose. Giving transparency and accountability for their environmental and societal impacts.
It’s Not Just for Big Corporations
While large corporations are often at the forefront of these discussions, small(er) businesses like ours can make a huge difference. Small businesses are the backbone of local communities and contribute significantly to employment, innovation, and culture. By supporting the Better Business Act, we’re showing that ethical practices aren’t just the responsibility of the multinationals. They’re accessible for everyone in business.
All business owners, have an opportunity to set an example in our communities. The public is increasingly demanding that businesses take more responsibility for their social and environmental impacts.
A recent survey found that 77% of the UK public believe companies should have legal responsibilities beyond simply generating profit—an increase from 72% in 2020.
By supporting this Act, we can show that small(er) businesses care about people and the planet just as much as making profits.
The Tangible Impact of Ethical Business Practices
Businesses operating at their best can drive economic and social progress. According to recent research, if all companies in the UK behaved this way. It could boost the UK’s GDP by £149 billion. And give the lowest-paid workers an annual pay rise of £2,288, and increase capital investment by £86 billion per year.
These aren’t just small changes. They represent the potential for enormous, positive transformation across the economy and a viable future where we protect people and the environment.
Our Stance at Below The Line Finance
At Below The Line Finance, we’ve always believed that businesses should be about more than just monetary gain. The name itself reflects our approach – while the top-line numbers are important. The real magic happens below the line, where purpose, people, and planet converge as one of our early diagrams depicts.
We help mission led businesses grow in alignment with their values, enabling long-term success that’s both financially and ethically sound. I explored our story in a recent article.
Supporting the Better Business Act is a natural extension of our mission. We believe that true success isn’t just about the traditional bottom line; it’s about creating positive, meaningful impact in the world.
Driven by over 2,500 Business Leaders
The Better Business Act isn’t just a wishful idea. It’s a business-led campaign, backed by over 2,500 leaders who recognise that the law needs to catch up with modern business culture. These leaders have already seen firsthand how balancing profit with purpose benefits not just their companies, but also their communities, employees, and the environment.
This Act simply formalises what many businesses are already doing: acting responsibly and sustainably.
Take Action: Pledge Your Support for the Better Business Act
If you believe in building a future where businesses are accountable for their impact on people and the planet, the first step is simple.
Pledge your support for The Better Business Act here.
It only takes a minute to join the growing movement of business owners and individuals advocating for a more sustainable, responsible approach to business.
Joining the Counting Change Movement For Accountants & Bookkeepers
I’ve recently joined the Counting Change Movement, an inspiring collective of finance professionals committed to driving ethical change in business through grass roots action.
Established by Scott Johnson, founder of Kung Fu Accounting who is on a mission to “leave the world in a better place than he found it, by working with like-minded humans who want to change the world but don’t know where to begin“. Counting Change empowers accountants & bookkeepers to play a key role in helping businesses align their financials with responsibility towards people and the planet. Together we are backing the Better Business Act.
At Below The Line Finance, we’ve always focused on helping businesses grow in a way that integrates profit with purpose.
Our involvement in the Counting Change Movement builds on that by advocating for a wider cultural shift. Where finance professionals lead the way to support businesses to act more sustainably and ethically.
Harriet Formby MA ACA is a Chartered Accountant, Fractional CFO and Business Mentor helping small businesses, SMEs and start-ups dedicated to changing the world for the better.
After growing disillusioned with making and managing money for faceless entities, she left the big corporate world of finance and founded Below The Line Finance in 2020 and shortly after Get Number Savvy.
Via 1:1 consultations, CFO retainers, courses, workshops and resources for companies with both micro and £1m+ budgets, she brings a more human side to finances, helping people not only see that they can make profit in an ethical way, but helping them get there too.
Clients regularly tell Harriet they’ve never had a CFO who ‘gets it’ like her, which is only strengthened when they find out that she works ‘off-grid’ by a beautiful meadow and meandering stream surrounded by a herd of retired racehorses, pet sheep, Dartmoor ponies, a rich array of wildlife and always with a dog or two close by.
