Iceland has joined a coalition of companies, business leaders and academics to support the Better Business Act, which calls for a simple change to the law that will ensure that every company in the UK takes ownership of its social and environmental impact.
The suggested change affects Section 172 of the Companies Act. For many companies this will not affect the behaviour of directors or the way they do business, but it will no longer be a choice whether to align the long-term interests of people, planet and profit.
The bill proposes a new principle of fiduciary duty that advances the interests of shareholders alongside those of society and the environment, requiring directors to consider all their stakeholders and to report on their actions.
Richard Walker, Iceland Managing Director said: “I strongly support the Better Business Act, which sets out to make a simple amendment to the law that will create a clearer legal framework for directors to meet the long-term needs of their stakeholders.
“The view that businesses exist primarily for the benefit of their shareholders is now completely outdated. We can only tackle the urgent problems facing humanity by thinking about the environment, society and the economy as a whole – and working together to find solutions. This change will help build a stronger foundation to achieve that.”
Find more information on the Better Business Act here.