EQUITY, CANNABIS, and the STATE of ILLINOIS Using the Illinois Cannabis Regulation and Tax Act As a Framework for Creating Equity for All

Jared Lewis, MPP 12 Tone Consulting

EQUITY, CANNABIS, AND THE STATE OF ILLINOIS Using the Illinois Cannabis Regulation and Tax Act as a Framework for Creating Equity for All

www.EmergingEquity.us 1

ABSTRACT 1 OVERVIEW OF THE BILL 2 Licenses 2 Oversight and Administration 3 Legitimization Overview 6 Social Equity Program in HB1438 7 Summation of the Regulated Cannabis Market in Illinois 9 THE HISTORY OF SOCIAL EQUITY 9 Framing Social Equity 9 Categorical Assessments of Social Equity Programs 12 Defining Two Eras of Social Equity 13 The Evolution of Equity 15 Evidence of a New Era 17 The Growth of the Social Impact Organization and Management 17 Academic Discourse and Data Collection 19 The Technology of Social Movement: Civil Rights and Black Lives Matter 20 The New Era of Equity: Measured Equity 25 LEGISLATION IN A NEW ERA: HB1438 AND MEASURED EQUITY 26 Assessments of Equality in HB1438 26 Creating Equity versus Reform for Equity 27 Flowchart of Reparatory Investment Mechanism in HB1438 29 Corporate Citizenship and Social Enterprise 29 CONCLUSION 30

ABSTRACT recreational marijuana began two years prior. Through these discussions, the Existing literature is sparse in describing Gordon-Booth sought avenues to address Social Equity in the larger historical context minority barriers to participation in cannabis of society. This paper provides a succinct markets throughout the country, among chronology of how Social Equity evolved them being (1) access to capital, (2) into a formal framework, and it categorizes equitable participation, (3) community this chronology into distinct eras with reinvestment and (4) expungements for identifiable characteristics as evidenced by persons incarcerated for cannabis-related larger social change occurring within each offenses. These components comprise the era. Through contextualizing the recently Social Equity framework in HB1438.1 From passed HB1438, the Illinois Cannabis the perspective of many Illinois and national Regulation and Tax Act which includes a cannabis legalization advocates and sweeping Social Equity provision, this paper publications, HB1438 was transformational concludes that in consideration of the because it included the most history of Social Equity and current social comprehensive Social Equity framework to movements, principally the Black Lives a recreational cannabis bill created to date. Matter movement, HB1438 is indicative of a 234 HB1438 provided the most explicit, multi- new Era of Social Equity which is given the faceted provision seeking to invest in title The Measured Era of Social Equity. disenfranchised communities through state- Additionally, HB1438 provides a legislative level cannabis legalization. framework for advancing structural equity through cyclical investments and intentional A central feature of the Social Equity legislative design at a time when immediate framework is the Stated intent to address structural reforms to society are in demand. the systemic harms resultant of the War on Continued monitoring and analysis of Drugs. Section 7-1 of the bill outlines that, in HB1438 and its effects will inform the future the interest of “remedying the harms of Social Equity for years to come. resulting from the disproportionate enforcement of Cannabis-related laws”, the general assembly should offer (1) financial INTRODUCTION assistance and (2) license application

benefits to individuals adversely impacted On May 31st, 2019, the Illinois legislature by this disproportionate enforcement.5 This introduced and debated House Bill 1438 is an important component of the law to (HB1438), The Cannabis Regulation and highlight because it identifies the Tax Act. Once passed, this law legalized administrative vehicles through which the adult use of cannabis in the State of Illinois. State will ensure that recreational cannabis During the bill’s debate of the House floor, tax revenue will be invested in target Representative Jehan Gordon-Booth, one of communities. Additionally, this provision is the bill’s sponsors, described the process the clearest description of which through which the legislation was communities are the aim of the Social developed. He explained to the House that the discussion around legalizing

1 “Illinois House Debates HB`438.” Facebook Watch, 2019, www.chicagobusiness.com/crains-forum-Cannabis/no-easy- www.facebook.com/Fox32Chicago/videos/illinois-house- path-sharing-marijuana-wealth. debates-recreational-marijuana-Bill/439884216574491/. 4 Benson, Thor. “Inside Illinois' New Marijuana Legalization 2 “New Illinois Legalization Bill Means Unprecedented Social Bill.” Rolling Stone, Rolling Stone, 25 June 2019, and Criminal Justice Reform.” MPP, Marijuana Policy www.rollingstone.com/culture/culture-features/marijuana- Project, 2019, www.mpp.org/States/illinois/new-illinois- illinois-legalization-Bill-852088/. legalization-Bill-means-unprecedented-social-and-criminal- 5 Illinois General Assembly, 2019. Article 7-1 Illinois State justice-reform/. Legislature, 3 Pletz, John. “The Stakes Are High for Illinois Cannabis.” www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. Crain's Chicago Business, Crain's Forum, 25 Nov. 2019,

Equity clause and the State justification for effectiveness of HB1438. If the law is targeting these communities. executed in the way that it is written and intended, it may result in measurable The year prior to the passage of HB1438 change in economic and social outcomes marked the 50th anniversary of the for systematically disenfranchised introduction of Social Equity as a Public communities, which will inform legislative Administration framework. In its 50th year, design of Social Equity bills in the future. the framework was the subject of considerable analysis at the Minnowbrook This paper will proceed by providing a at 50 Conference. This conference has comprehensive review of HB1438, followed taken place every ten years since the first by an overview of Social Equity as a Public Minnowbrook Conference in 1968, in which Policy and Administration tool. The paper the modern Social Equity framework was will conclude by analyzing the law within the created.6 Recent discussions of Social context of traditional Social Equity Equity signal that Social Equity as frameworks and highlight elements of articulated in HB1438 is incongruent with HB1438 of particular interest to the author. Social Equity as understood in the Public Policy and Administration field. Yet, the OVERVIEW OF THE BILL Social Equity clause in HB1438 is the subject of much praise and adulation by HB1438 is 610 pages in total. As described public policy and administration during the debate on HB1438, the bill seeks professionals. For example, the Brookings to design a recreational cannabis market by Institute recently published a report calling setting out a highly controlled supply chain on the creation of a Cannabis Opportunity that includes substantive provisions around Agenda and urging “Federal policymakers monitoring the total cannabis in the market [to] look to the model employed in the State and requiring dispensaries to account for all of Illinois.”7 cannabis that is purchased and sold.

The legislative design of HB1438 and its Social Equity program compels a contextual Licenses review of Social Equity to understand the In total, the law creates six different types of ways in which the law was created in cannabis businesses that are permitted to response to a changing society. This touch cannabis in the regulated market review will illuminate the ways in which the through licensures. These businesses bill represents an evolution in Social Equity include:8 legislation. Failure to explore the larger societal context of HB1438 undermines the (1) Cultivation Center License: a license importance of HB1438 in advancing issued by the Department of frameworks of equity in society and restricts Agriculture that permits a person to the opportunity to conduct substantive act as a cultivation center; monitoring and analysis of the effect of (2) Craft Grower License: a facility HB1438 on creating equitable outcomes. operated by an organization or Only through such monitoring and analysis business that is licensed to cultivate, can the field of Public Policy and dry, cure, and package cannabis Administration draw conclusions about the and perform other necessary

6 Carboni, Julia, and Tina Nabatchi. “Minnowbrook at 50: A https://www.brookings.edu/policy2020/bigideas/it-is-time-for- Prelude.” Perspectives on Public Management and a-Cannabis-opportunity-agenda/. Governance, 2019, 235–37. 8 Illinois General Assembly, State of Illinois, 2019. Section 1- https://doi.org/10.1093/ppmgov/gvz019. 10 Illinois State Legislature, 7 Henry-Nickie, Makada, and John Hudak. “It Is Time for a www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. Cannabis Opportunity Agenda.” Brookings. Brookings, March 23, 2020.

activities to make cannabis available example, the Department of Agriculture is for sale; charged with administering Adult Use (3) Processing Organization License: a Cultivation Center Licenses for facility operated by an organization organizations interested in growing or business that is licensed by the cannabis. The law also calls for extensive Department of Agriculture to either data collection through its Monitor and extract constituent chemicals or Reporting requirements. Fourteen out of compounds to produce cannabis fifteen entities with additional administrative concentrate or incorporate cannabis responsibilities listed in HB1438 have at or cannabis concentrate into a least some data collection requirements. product formulation to produce a The legislation indicates that data is Cannabis product; intended to monitor (1) the effect of (4) Dispensing Organization License: cannabis in the State on social and health permits a person to act as a outcomes, (2) the legitimate and illicit dispensing organization under this economy to inform total supply of legal Act and any administrative rule cannabis available in the State and (3) the made in furtherance of this Act degree of equitable industry ownership and (5) Transportation Organization distribution of taxes resultant of economic License: an organization or business productivity that is created in the legal that is licensed by the Department of Illinois cannabis market. The collection and Agriculture to transport cannabis on monitoring of this data are intended to behalf of a cannabis business optimize the administration of the law and establishment or a community its Social Equity programs. For example, an college licensed under the Adult Use Cannabis Health Advisory Community College Cannabis Committee was formed and charged with Vocational Training Pilot Program; monitoring changes in drug use data and and comparing this to emerging science about (6) Infuser Organization License: a the health effects of cannabis use. This facility operated by an organization analysis is to be used to make formal or business to directly incorporate recommendations to the Department of cannabis or cannabis concentrate Human Services to better manage public into a product formulation to produce health awareness campaigns.9 a cannabis-infused product. Multiple agencies are also tasked with Oversight and Administration enforcement or programming of some In total, HB1438 taps 15 different provision of the law. Enforcement can range departments or governmental functions into from administrative action – like imposition distinct oversight and administrative roles. of fees – against businesses for violation of The functions of each department can be provisions in the law. For example, the categorized as belonging to one of four Department of Financial and Professional categories: Licensing, Monitoring or Regulation may “revoke, suspend, place on Reporting, Enforcement and Programming. probation, reprimand … a Cannabis Licensing is defined as granting an official business establishment or Cannabis State license under a provision of the law. business establishment agent.”10 Agencies License types are reflective of the core tasked with programming are responsible function of the department that is instructed for providing education, support or to permit the license under the law. For supplementary instruction. For example, the State Police may “include the costs for

9 Illinois General Assembly, State of Illinois, 2019. Section 5- 10 Illinois General Assembly, State of Illinois, 2019. Article 45 15(b) Illinois State Legislature, Illinois State Legislature, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf.

3 tuition at training schools [and] the salaries affiliate responsibilities assigned therein are of trainees while in schools…”11 The 15 listed in the matrix below. departments outlined in HB1438 and

Table 1. Illinois State Departments and their Respective Responsibilities as Assigned in HB1438

Monitoring/ # Department Licensing Enforcement Programming Reporting

1 Department of Agriculture x x x

2 Financial and Professional Regulation x

3 Commerce and Economic Opportunity x x

4 Census x

5 State Board of Education x

6 Illinois Department of Employment Security x

7 Department of State Police x x x

8 Federal Bureau of Investigation x

9 Department of Public Health x x

10 Department of Human Services x x

11 Illinois Community College x x

12 Secretary of State x

13 Illinois Criminal Justice Information Authority x

14 Legislative Audit Commission x

15 Department of Revenue x x

Additionally, the position of the Illinois HB1438 institutes a number of newly Cannabis Regulation Oversight Officer was codified roles and expands the created within the Department of Financial responsibilities of State officials in the and Professional Regulation. The role of interest of reducing the effect of this position is to identify discrimination in discrimination throughout the State of Illinois the cannabis industry and evaluate the in the cannabis marketplace. There are at impact of such discrimination. The intention least three different types of programs that is for the Officer to recommend reduction or are created to address such discrimination: elimination to “any identified barriers to (1) advisory programs, (2) investment entry in the Cannabis market.” 12 programs and (3) research programs. The Adult Use Cannabis Health Advisory Committee is an example of an advisory

11 Illinois General Assembly, State of Illinois, 2019. Chapter 12 Illinois General Assembly, State of Illinois, 2019. Section 85, Paragraph 509 Illinois State Legislature, 5-45 Illinois State Legislature, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf.

4 program. The Committee is composed of The DUI Cannabis Task Force is a research State officials, business owners, medical program appointed to “study the issue of professionals and cannabis rights driving under the influence of Cannabis.”17 advocates. It is charged with monitoring HB1438 grants responsibility for this changes in drug use data and to making program to the Director of State Police, recommendations to the Department of Secretary of State and President of the Human Services to better address the Illinois State’s Attorney’s Association. An harms of addiction.13 Substantively, this important feature of this Task Force is the committee is tasked with data-based harm open-ended nature of the question the Task reduction. Harm reduction is a vital tool in Force is studying – namely, what influence equitable public health addiction services does cannabis use have on motor skills and because it “recognizes that the realities of impairment? Studies on the subject of poverty, class, racism, social isolation, past cannabis impairment and motor skills have trauma, sex-based discrimination and other been inconsistent. A publication by the social inequalities affect both people’s Centers for Disease Control suggests that vulnerability to and capacity for effectively cannabis use while driving is analogous to dealing with drug-related harm.”14 drinking while driving.18 Yet, a seminal study by Dr. Ethan Russo, Director of Research at The Restore, Reinvest and Renew (R3) the International Cannabis and Program Board is an investment program Cannabinoids Institute published that chaired by the Lieutenant Governor, with “studies have failed to demonstrate that seats allocated to the Attorney General and drivers with cannabinoids in the blood are other State officials. Under this program, significantly more likely than drug-free 25% of tax revenue from cannabis will fund drivers to be culpable in road crashes.”19 violence prevention, re-entry and health services throughout the State of Illinois. The Answering the question of cannabis Board is responsible for designating R3 impairment is important given the varied area boundaries, meaning that the experiences of different demographics in Lieutenant Governor – along with the traffic stops by police. The Stanford Open Attorney General – designates the areas of Policing study investigates the disparities the State that will receive program between Black, Latino and White drivers funding.15 Geographic-based investment is when it comes to traffic stops and searches. a vital function in creating safer While the study is not conclusive in neighborhoods because studies show that determining that Black and Latino drivers violence is geographically concentrated. are the subject of more traffic stops, the Research demonstrated that “around half of study is conclusive in determining that all crime complaints or incidents of gun minority drivers are searched at a higher violence concentrated at about 5 percent of rate after being stopped.20 street segments or blocks in a given city.” 16

13 Illinois General Assembly, State of Illinois, 2019. Section 17 Illinois General Assembly, State of Illinois, 2019. 11- 55-80 Illinois State Legislature, 501.10 New Illinois State Legislature, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. 14 “Principles of Harm Reduction,” Harm Reduction Coalition, 18 “What You Need to Know About Marijuana Use and accessed June 8, 2020, https://harmreduction.org/about- Driving.” Centers for Disease Control, 2017. us/principles-of-harm-reduction/. 19 Grotenhermen, Franjo, and Ethan Russo. “Conclusion.” 15 Illinois General Assembly, State of Illinois, 2019. (410 Essay. In Cannabis and Cannabinoids: Pharmacology, ILCS 705/10-40) Illinois State Legislature, Toxicology, and Therapeutic Potential. London: Routledge, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. 2008. 16Stephen Lurie, “There's No Such Thing as a Dangerous 20 “The Stanford Open Policing Project.” Neighborhood,” CityLab, February 28, 2019, openpolicing.stanford.edu. Stanford University. Accessed https://www.citylab.com/perspective/2019/02/broken- June 1, 2020. https://openpolicing.stanford.edu/findings/. windows-theory-policing-urban-violence-crime-data/583030/.

Finding greater clarity regarding the market and any other data analysis that relationship between cannabis use and speaks to the movement, sell or resale of impairment (particularly while driving) could cannabis throughout the State. aid the State in ensuring a more consistent experience at traffic stops across all The supply chain is insulated by limiting demographic groups. For example, should purchasing, selling and transportation of this research determine that cannabis cannabis to interactions between licensed intoxication and driving pose no substantive organizations to other licensed danger to society, it follows that the State organizations. For example, a designated would be likely to remove penalties for dispensing organization can purchase driving while under the influence of products from a cultivation center or another cannabis. This would have a direct impact dispensing organization.22 However, a on the standards by which police would cultivation center is not permitted to sell to have the authority to search the vehicle of an individual buyer. The only licensed someone suspected of cannabis intoxication organizations that can sell to an individual after being stopped. buyer are dispensaries. Similarly, dispensaries cannot purchase products Although this effect may be marginal, given from any organization that is not licensed by the disproportional rate of drug-related the State. In turn, the State manages the searches during traffic stops experienced by total amount of licenses based on an minorities, this study by the DUI Cannabis assessment of demand and total supply Task Force may ultimately result in a available. In granting additional Infuser reduction in the amount of minorities who Licenses, the Department of Agriculture is enter the carceral State as a result of drug- instructed to consider (1) the percentage of related detainment after a traffic stop. cannabis sales occurring the illegitimate market, (2) whether there is an adequate Legitimization Overview supply of cannabis for medical users, (3) HB1438 legalizes possession and where there is an adequate supply of consumption of adult-use recreational cannabis to serve purchasers and (4) cannabis for adults 21 years of age or older. whether there is an oversupply of cannabis. In doing so, the law authorizes a highly 23 regulated supply chain that permits a limited number of producers under each license The Department of Agriculture is also type to produce or distribute cannabis and tasked with assessing the total amount of cannabis-derived products within the cannabis in the legitimate market for the five parameters of the law and their license. As other license types. The State uses this part of the State’s multi-layered monitoring data to control supply. If the State and control efforts, the Department of determines there to be an oversupply of Agriculture is tasked with providing a means cannabis, the Department of Agriculture is through which all producers in the supply permitted to decrease Cannabis in the chain are required to report the movement cultivation stage by up to 3,000 square feet ‘by rule’, based on market need.24 The State of cannabis.21 The effect of this is that at any given time, the State is able to identify additionally penalizes retailers in the the total amount of cannabis in the unregulated market: “Any person who legitimate market, the age of cannabis in the knowingly acts as a retailer of Cannabis in

21 Illinois General Assembly, State of Illinois, 2019. 55th-21st 23 Illinois General Assembly, State of Illinois, 2019. (410 Illinois State Legislature, ILCS 705/35-5) Illinois State Legislature, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. 22 Illinois General Assembly, State of Illinois, 2019. (410 24 Illinois General Assembly, State of Illinois, 2019. (410 ILCS 705/65-45) Illinois State Legislature, ILCS 705/1-10) Illinois State Legislature, www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf.

6 this State without first having obtained a on Drugs.26 The law reads such that neither certificate...shall be guilty of a Class 4 race nor ethnic demographic is referenced. felony.”25 Instead, the law uses geographic and experiential markers, such as residence of a Social Equity Program in HB1438 ‘disproportionately affected area’ or someone who has been incarcerated as a The State seeks to increase the result of the War on Drugs. This is distinctly participation of minorities and different than Civil Rights-era laws intended disenfranchised communities in the supply to prohibit discrimination, which explicitly chain through the Social Equity application name race, gender, class or other process. A Social Equity Applicant is demographic information referred to as a defined as an applicant that (1) has resided ‘protected class’. In HB1438, Social Equity in an area disproportionately impacted by Applicants, as defined by their geographic the War on Drugs, (2) is majority-owned by or experiential marker, receive 50 points in an individual that was arrested as a result of support of their application for a license out the War on Drugs, and (3) has at least 10 of a total point system that includes 250 full time employees, with a majority either points. All Dispensary License applicants living in an area disproportionately affected are scored based on the criteria listed in the by the War on Drugs for at least 5 years, or following table.27 who was incarcerated as a result of the War

Table 2. License Application Scoring System by Category

Total Possible Points Application Category Per Category

Social Equity Applicant 50

Security/Record Keeping 65

Business Plan, Financials, Floor Plan 65

Knowledge and Experience 30

Employee Training 15

Labor and Employment 5

Environmental Plan 5

Illinois Ownership 5

Veteran Status 5

Diversity Plan 5

Community Engagement Bonus Points 2

25 Illinois General Assembly, State of Illinois, 2019. (410 27 ADULT USE Cannabis SUMMARY. ADULT USE ILCS 705/65-38) Illinois State Legislature, Cannabis SUMMARY, Illinois Department of Financial and www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. Professional Regulation, 2019, 26 Illinois General Assembly, State of Illinois, 2019. Section www2.illinois.gov/IISNews/20242- 1-10 Illinois State Legislature, Summary_of_HB_1438__The_Cannabis_Regulation_and_T www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. ax_Act.pdf.

An analogous criterion and scoring system from the law continues to be invested that incorporates Social Equity status is through the State’s R3 Program. Twenty- included across all applications for license five percent of remaining revenue after types accompanied by other Social Equity covering administrative costs is invested in initiatives. In addition to Social Equity communities disproportionately application scoring, the Cannabis Business affected by the War on Drugs by way of Development Fund includes the creation of grants towards gun violence reduction a $30 million dollar low-interest loan programs, re-entry programs and programs program to support Social Equity business that support social determinants of health.30 applicants with startup costs as well as initiatives to recruit more Social Equity Applicants.28 29 Simultaneously, revenue

Figure 1. Flow Chart of the Regulated Cannabis Market in Illinois

28 Illinois General Assembly, State of Illinois, 2019. (410 30 “Fact Sheet.” Illinois Justice Project, Illinois Justice Project, ILCS 705/7-10) Illinois State Legislature, 2019, www.iljp.org/r3factsheet. www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. 29 ADULT USE Cannabis SUMMARY. ADULT USE Cannabis SUMMARY, Illinois Department of Financial and Professional Regulation, 2019, www.idfpr.com/.

Summation of the Regulated supply functions (i.e. a retailer Cannabis Market in Illinois cannot simply be a transporter - or a majority owner in a transport HB1438 establishes a highly regulated company); cannabis market in the State of Illinois. (3) It exponentially expands the function Regulations are focused on the supply side of State government through data of the market. The law establishes six collection, broadens the role and interdependent functions within the market function of many government supply chain from growth to consumption of agencies and permits agencies to cannabis products. The State limits the total evolve and change in response to number of licenses available at any one observed shifts demonstrated by time based on regular assessment of data analysis and advisement by consumer need for more or less cannabis appointed oversight committees; and product (this is determined by collecting and (4) It creates a metric-based Social analyzing cannabis consumption data). Equity program designed to Similarly, the State also monitors and formulate equal participation in the controls the total amount of cannabis to be newly created market by those produced by licensed organizations based disproportionately affected by the on an assessment of data about the amount War on Drugs, and ensures that all of product in the market, both regulated and corners of the legislation are tied to unregulated. these metric based objectives.

HB1438 calls for a massive amount of data THE HISTORY OF SOCIAL to be collected, analyzed and incorporated into administrative decisions regulating the EQUITY market. Data includes health data, criminal background data, tourism data, data on Framing Social Equity regulations in other States, and any other Social Equity as a theory is said to have its data “necessary for the administration of origins in the founding of Western [the Bill]”31 Fifteen departments and a newly Civilization itself. Plato drew distinctions created office are tasked with different roles between justice and equity, while Aristotle in collecting and executing the data, claimed that equity is in fact a form of monitoring compliance and executive justice.32 In modern times, Social Equity corrective or punitive measures in the event was formalized as a Public Administration of non-compliance. framework developed in the 1960s as a means to observe the process through The law can be summarized by four parts: which the government would become more (1) The legislation legalizes Adult-Use accessible in the era of affirmative action.33 recreational Cannabis in the State of The term Social Equity was coined by Illinois; George Frederickson in 1968 and was (2) It creates a controlled, segmented proffered as the third pillar of Public and monitored marketplace, reliant Administration.34 Since the introduction of on structurally compartmentalized formal Social Equity frameworks, research

31 Illinois General Assembly, State of Illinois, 2019. (410 repository.usfca.edu/cgi/viewcontent.cgi?article=1011&conte ILCS 705/5-45) Illinois State Legislature, xt=pna#:~:targetText=George%20Frederickson%20is%20cr www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. edited%20with,the%20father%20of%20the%20subfield. 32 Sucre, Andrew. “Aristotle’s Conception of Equity in 34 Frederickson, H. George. “Public Administration and Context.” Thesis, Graduate School at the University of Social Equity.” Missouri – St. Louis , 2013. Http://Bss.sfsu.edu/Naff/PA_752/Frederickson.pdf, Public 33 Johnson, Richard. “Social Equity as a Tool for Social Administration Review, 1990, Change.” Gleeson Library, The University of San Francisco, www.jstor.org/stable/976870?origin=JSTOR-pdf. 2011,

9 has consistently centered practical by definition cannot be equal. It is important application of what had, at that time, still to note that it was the administration of been regarded as the philosophy of equity. these laws that was the subject of the Early on, the focus of discussion was to courts’ intervention, which might suggest clearly define Social Equity so that Public why Social Equity academia is rooted in the Administrators could better adopt its field of Public Administration. Over the principles and researchers could easily evolution of the separate-but-equal doctrine, identify the type of Social Equity construct the court repeatedly tested the method that was being prioritized in any given through which the government was government program. To that end, a administering the law. Specifically, in Sweatt symposium on Social Equity and Public v. Painter, the court’s challenge to separate- Administration was held in 1968 which but-equal was critical of how the State of scholars clarified the theory.35 Texas was managing a “separate-but-equal” law school education. The court ultimately The symposium resulted in a suite of determined that Texas had passed the essays that explored the philosophical and ‘separate’ test of the doctrine but failed at historical dialogue around Social Equity.36 A the ‘equal’ test. Similarly, in Brown v. Board salient observation is that Social Equity of Education, the court provided that the progress has advanced through the social, emotional and psychological effect of judiciary as a result of lawsuits challenging segregation as demonstrated by the the synchronous norms of racial infamous “Doll Test” – black children segregation and inequality. For example, preferring non-black dolls – found that the doctrine of ‘separate-but-equal’ was first segregation is fundamentally unequal. formalized in Plessy v. Ferguson (1896) in Therefore, the court found that it is not which the Supreme Court determined that possible for the government to administer separate-but-equal public accommodations separate-but-equal education. This judicial were permissible and required in decision was not about the morality of segregated public spaces. This two part segregation itself, but rather if segregation, doctrine provided a framework for states to if perceived to be in the interest of a state, comply with the 14th Amendment (equal can be done so in an equitable manner. In protection under the law) in the state determining that in fact it cannot, the court interest of segregation.37 Fifty-four years shifted how public-school administrators later, the U.S. Supreme Court determined in managed public education.39 Sweatt v. Painter (1950) that in the case of racially segregated legal education in the In his book, Social Equity and Public State of Texas, the government failed to Administration, Frederickson distinguishes meet the separate-but-equal test in between two groups of Public administering separate accommodations, Administration theory: (1) the Classical because of ‘quantitative differences in Bureaucratic Model and (2) the facilities and experiential factors.’38 Just Neobureaucratic Model.40 He notes that the four years later, in Brown v. Board of Classical Bureaucratic Model emphasizes Education (1954), the doctrine of separate- “structure, control, and the principles of but-equal was completely struck down administration,” while The Neobureaucratic because the court determined that separate Model emphasizes the “process of decision

35 Frederickson, George. “Social Equity and Public 38 Sweatt v. Painter (U.S. Supreme Court June 5, 1950). Administration.” Public Administration Review, vol. 34, ser. 1, 39 Frederickson, H. George. “Public Administration and 1974, pp. 1–2. 1. Social Equity.” Public Administration Review, vol. 50, no. 2, 36 McGregor, Eugene. “Social Equity and the Public Service.” 1990, p. 228., doi:10.2307/976870. Public Administration Review, vol. 34, no. 1, 19774, pp. 18– 40 Frederickson, H. George. “2 - 3.” Essay. In Social Equity 29., www.jstor.org/stable/974397. and Public Administration: Origins, Developments, and 37 Plessy v. Ferguson (Supreme Court of the United States Applications, 24–56. M.E. Sharpe, Inc., 2010. May 18, 1896).

10 making being...decisions are made to courts in equity advancement. Once the achieve as much of a given goal as court determined that separation by race possible.”41 Social Equity as a Public inherently created inequality, then the court Administration Framework belongs to the concluded that it is infeasible for the Neoburacratic Model. Social Equity, in the government to provide segregated way that the court ruled throughout its tests accommodations while also upholding a of the separate-but-equal doctrine, applied constitutional requirement of providing an analytical lens to the practical cause and ‘equal protection under the law’. The effect relationship between public process through which the courts compelled administrators and their biased states to comply with the constitutional management techniques. mandate of equal protection is what is most analogous to Frederickson’s definition. In Initially, the courts provided a framework Brown v. Board of Education (II) (1955), the through which such biases were permitted, court sought to provide an integration but within a century, they determined that roadmap to public school administrators. In there was no such framework that could be this second ruling, the court articulated that biased without propagating inequality. ‘the problems identified in Brown I required Social Equity is a framework centered on varied local solutions. Chief Justice Warren the government's procedural and conferred much responsibility on local bureaucratic responsiveness to the daily school authorities ...Warren urged localities needs of the citizenry such that the to act on the new principles promptly and to government adopts processes that develop move toward full compliance with them ‘with and maintain equal distribution of goods and all deliberate speed’."43 This is the context services in consideration of the real of 1950s-1960s era governance from which experiences of segments of the citizenry. If Social Equity in Public Administration a group has been systematically formally evolved. Brown v. The Board of disenfranchised, then it is reasonable to Education I and II was a seminal moment in consider the psychological, emotional and which inequitable public management structural effects of that systematic techniques were being challenged and disenfranchisement in the daily interactions improved prior to the adoption of Social of that group. For example, if a group has Equity frameworks by federal statutes. The been prevented from learning to read, then Civil Rights era pressured the government it cannot be expected that this group will be to evolve in creating equal opportunity for able to effectively complete text-heavy tax all. This era resulted in an ever-expansive forms without compensatory assistance or dialogue on what equality under the law support. Frederickson writes that means for many groups that have been “embracing equity as the third normative systematically disenfranchised, including: pillar of public administration requires public African Americans, women, LGBTQ servants to seek out and work toward more communities, immigrants, children and the just allocations of public goods and impoverished. The role of Social Equity is to services, to represent those who do not clearly describe the “what” and “how” in otherwise have access to public policy achieving equity optimization in government processes” 42 services and Public Administration.

Frederickson’s definition of Social Equity harkens back to the historical role of the

41 Frederickson, H. George. “2 - 3.” Essay. In Social Equity 43 "Brown v. Board of Education of Topeka (2)." Oyez, and Public Administration: Origins, Developments, and www.oyez.org/cases/1940-1955/349us294. Accessed 18 Applications, 24–56. M.E. Sharpe, Inc., 2010. May. 2020. 42 Frederickson, H. George. “2 - 3.” Essay. In Social Equity and Public Administration: Origins, Developments, and Applications, 24–56. M.E. Sharpe, Inc., 2010.

11 Table 3. Categorical Assessments of Social Equity Programs as defined by George Frederickson (2010)

Category Characteristic Example

Rare in Public Administration - every Simple Individual Equalities One person - one vote. individual has identical rights.

Equality within a category, but Farmers are taxed differently than Segmented Equality inequality in segments. retailers.

Equality between groups or Block Equality Separation by race is inherently unequal subclasses.

Marks the goods or services to be If schools and fire protection is provided, Domains of Equality distributed. so should golf courses and recreation

Two people have equal opportunity to a Equalities of Opportunity Prospect and Means of Opportunity job if they have the same talents and qualifications.

If a person’s life is threatened they The Value Equality The individual value received should be prioritized in police responsiveness.

increase marketplace participation by those disproportionately affected by the War on Categorical Assessments of Drugs. This is executed by giving such Social Equity Programs business applicants more points when they apply for licenses. This program is a form of George Frederickson, a co-organizer of the Opportunity Equality, which is concerned first Minnowbrook Conference and Social with the ‘prospect and means’ of Equity scholar, defines six categories of opportunity. If given the same opportunity to Social Equity and their uses. Any judicial perform, minorities would perform just as decision or government program with an well, if not better, than their privileged intention to create more equal governance counterparts. All six categorical can be assigned to at least one of assessments as defined by Frederickson Frederickson’s original six categories. are listed in the table above.44 Striking down separate-but-equal is a form of Block Equality, characterized as demonstrating equality between groups or subclasses. The framework for Social

Equity Applicants in HB1438 seeks to

44 Frederickson, H. George. “2 - 3.” Essay. In Social Equity and Public Administration: Origins, Developments, and Applications, 24–56. M.E. Sharpe, Inc., 2010.

12 constitutional rights of all Americans, Defining Two Eras of Social Equity particularly some of the most vulnerable members of our society. “47 Over the next Non-Discrimination Era ten years, additional civil rights bills took on The first set of federal policies that explicitly workplace discrimination, housing addressed discrimination against specific discrimination, voting and education demographic characteristics – such as race, discrimination in the form of the 1964 Civil gender and nationality – materialized as a Rights Bill, the 1968 Civil Rights Bill and the result of the Civil Rights Movement and 1972 Civil Rights Bill.48 49 50 The Equal southern backlash to Brown v. Board of Employment Opportunities Commission was Education. After the courts instructed also formed during this period to investigate “localities to act on the new principles discrimination complaints.51 The first promptly and to move toward full Minnowbrook Conference was organized by compliance with them ‘with all deliberate Dwight Waldo in 1968, in between the speed'' in implementing school passage of these suite of policies, and soon desegregation, southern state after the assassination of Martin Luther King administrations began campaigns of Jr., John F. Kennedy and Bobby Kennedy.52 resistance. The most notable of these At the 1968 conference, George resistance efforts resulted in a national Frederickson coined Social Equity and his showdown between President Eisenhower seminal literature established the foundation and Governor Orval Faubus of Arkansas, in of equity as a ‘Third Pillar’ of Public which the president ordered federal military Administration.53 escorts for nine students registered to attend an all-white high school in Little Rock During this period, Executive Orders were Arkansas.45 often issued that preceded to the introduction and passage of related As a result of this highly visible legislation, including President Kennedy’s confrontation, the federal government order 10925 (1961) instructing federal passed the Civil Rights Bill of 1957 in which contractors to take “affirmative action to the government created the United States ensure that applicants are treated equally Commission on Civil Rights which is tasked without regard to race, color, religion, sex, with “inform[ing] the development of national or national origin.”54 President Johnson’s civil rights policy and enhance enforcement order 11246 (1965) required federal of federal civil rights laws’46 and the Civil contractors to expand job opportunities for Rights Division of the Department of Justice minorities and women.55 This era may be which is empowered to intervene through considered the Non-Discrimination Era of injunction to “uphold the civil and Social Equity, in which Social Equity policies

45 History.com Editors, ed. “Little Rock Nine.” History.com. 50 Jjackson. “Title IX Frequently Asked Questions.” A&E Television Networks, January 29, 2010. NCAA.org - The Official Site of the NCAA, January 27, 2014. https://www.history.com/topics/black-history/central-high- http://www.ncaa.org/about/resources/inclusion/title-ix- school-integration. frequently-asked-questions. 46 “USCCR: About Us > Mission.” US Commission on Civil 51 “EEOC Overview.” U.S. Equal Employment Opportunity Rights. Accessed May 29, 2020. Commission. Accessed June 1, 2020. https://www.usccr.gov/about/. https://www.eeoc.gov/overview. 47 “Civil Rights Division.” The United States Department of 52 Carboni, Julia, and Tina Nabatchi. “Minnowbrook at 50: A Justice. Department of Justice, April 29, 2020. Prelude.” Perspectives on Public Management and https://www.justice.gov/crt. Governance, 2019, 235–37. 48 “Title VII of the Civil Rights Act of 1964.” U.S. Equal https://doi.org/10.1093/ppmgov/gvz019. Employment Opportunity Commission. Accessed June 1, 53 Johnson, Richard Greggory. “Social Equity as a Tool for 2020. https://www.eeoc.gov/statutes/title-vii-civil-rights-act- Social Change.” Public and Nonprofit Administration, The 1964. University of San Francisco, 2011, 163–63. 49 “7 CFR § 1901.203 - Title VIII of the Civil Rights Act of 54 Executive Order 10925 (1961). 1968.” Legal Information Institute. Legal Information Institute. 55 Executive Order 11246 (1965). Accessed June 1, 2020. https://www.law.cornell.edu/cfr/text/7/1901.203.

13 centered on reducing discrimination in term. In the late 1980s, the Hudson Institute public accommodations and employment. published a report titled Workforce 2000. This is also the era that birthed Social This report, sponsored by the Employment Equity as it is understood in Public and Training Administration, detailed that in Administration today. the year 2000, the workforce would be more female, Hispanic and Black and that the The Diversity Era United States needed to “reconcile the While the previous era produced the most conflicting needs of women, work, and progressive period of non-discrimination families [and] integrate Black and Hispanic policies in the United States, enforcement of workers fully into the economy.”60 Although these policies was often ambiguous.56 this change would be marginal, media Changes in enforcement parameters gave interpretation of the report effectively re- rise to this second era of Social Equity: The charged the Social Equity discourse and Diversity Era of Social Equity. much of the work in the field became about ‘workplace-diversity’.61 As of 2003, it was Prior to this era, companies were left estimated that the Diversity and Inclusion without much direction as to how they would industry was valued at $8 Billion.62 Thirteen execute anti-discrimination efforts, ensure years prior, in 1990, the industry wasn’t compliance and shield themselves from large enough to be tracked by formal litigation. As a result, companies began economic measurements. While the hiring equal opportunity specialists and tangible effects of this growing industry developing diversity programs.57 In the remain questionable (people of color make 1980s, President Ronald Regan began up 40% of the population, but only 16% of shifting federal resources away from equal Fortune 500 Board seats63), it is clear that opportunity enforcement under the moniker there is a growing demand for diversity and of ‘new racism’.58The Regan administration inclusion training in the private sector. This reasoned that the government could not demand has a direct link to the Anti- force small businesses to adopt such Discrimination Era of Social Equity, which is policies against their interest and doing so the era in which diversity trainings were was a form of racism against non-minorities. introduced in corporate settings for the In the absence of federal oversight, many purposes of maintaining compliance with companies retired their discrimination civil rights protections. A new phase in training. For other firms “affirmative action Social Equity evolved from a reduction in and equal employment training, while still federal oversight to Civil Rights era policies included in the training catalogs, were and EEOC compliance. In the interest of scaled back as a cost-cutting effort, perhaps survival, in the late 1980s, companies mandatory only for those in managerial adopted internal diversity and inclusion positions.” 59 programs. A missing feature of many of A turning point in corporate diversity efforts these initiatives, however, is their linkage of occurred near the end of Regan’s second diversity and inclusion efforts to tangible

56 Kelly, Erin, and Frank Dobbin. “How Affirmative Action 60 Johnston, William, and Arnold Packer. “Workforce 2000: Became Diversity Management.” American Behavioral Work and Workers for the 21st Century.” Indianapolis, IN: Scientist 41, no. 7, 1998. Hudson Inst., , June 1987. 57 Dobbin, Frank, John Sutton, John Meyer, and Richard 61 ANAND, ROHINI, and MARY-FRANCES WINTERS. “A Scott. The American Journal of Sociology 99, no. 2 Retrospective View of Corporate Diversity Training From (September 1993): 401–3. 1964 to the Present.” Academy of Management Learning & 58 Rich, Spencer. “Reagan Panel, Citing 'New Racism,' Education, 2008, 358–58. https://doi.org/10.5465/amle. Urges Easing of EEOC Rules.” The Washington Post. 62 NEWKIRK, PAMELA. “Time Magazine.” Time Magazine, January 30, 1981. 2019. 59 ANAND, ROHINI, and MARY-FRANCES WINTERS. “A 63 Oven, Carey. “Missing Pieces Report: The 2018 Board Retrospective View of Corporate Diversity Training From Diversity Census.” Deloitte United States, May 28, 2020. 1964 to the Present.” Academy of Management Learning & https://www2.deloitte.com/us/en/pages/center-for-board- Education, 2008, 358–58. https://doi.org/10.5465/amle. effectiveness/articles/missing-pieces-fortune-500-board- diversity-study-2018.html.

14 diversification benchmarks (the Value with regard to social movements, sociology Equality category as defined by has tended to segment the relationship Frederickson). Research suggests this between social change and social missing link continues to be a barrier to movement as though these two observable achieving meaningful workplace social phenomena were unrelated. He diversification.64 The Diversity Era of Social claims that the “discussion is almost purely Equity evolved out of a retreat of verbal and degenerates into ‘definitions’, governance and a rising demand for mere typologies, taxonomies and natural organizational cultural competency histories...the alternative, clearly, is to locate (diversity training) by firms positioning the phenomena in question in a theoretical themselves for long-term survival in an framework of general sociological increasingly diversified workplace. significance”67 Banks asserts that there is a cause and effect relationship between The Evolution of Equity instances of social change in society, such In 1972, with the backdrop of the Civil as technological innovation, organizational Rights Movement, British Sociologist J.A. change management, mass migrations and Banks introduced a radically new term to new forms of knowledge, and social the world: social entrepreneur. The term is movements. In other words, social change defined many different ways by different and social movements feed into each other. experts, but a general consensus in Technological innovation can create the contemporary parlance is that a social need for large social change, which may entrepreneur is someone who uses (1) profit necessitate a social movement to achieve rearing models to (2) advance outcomes in that social change. Simultaneously, this the public interest. The term was introduced cause and effect relationship is non- in Banks’ book The Sociology of Social sequential because the result of social Movements, where he “utilized the term to movement is often innovation in portray the need to utilize administrative organizations, technology and society at abilities to address social issues, in addition large. To demonstrate this, the next paragraph will analyze what is generally to addressing business challenges”.65 regarded as the first mass social movement Banks originally defined a social in the context of preceding technological entrepreneur as someone “who saw the innovation and subsequent changes in possibility of using managerial skills directly Western society. for socially constructive purposes.”66 The importance of the term is that it introduces a The Gutenberg Printing Press was invented framework for describing the evolving in 1440 and kicked off what is referred to as understanding of how social change is the Printing Revolution.68 The printing press achieved in society. is regarded as the most revolutionary invention in human history, “dwarfing Banks’ central thesis is critical of traditional anything which has occurred since the sociological interpretations of social change invention of writing.” 69 The technological and social movements. He suggests that,

64 Blessett, Brandi, Jennifer Dodge, Beverly Edmond, Holly T REGION: Policy and Cases, 54–54. Place of publication not Goerdel, Susan T Gooden, Andrea M Headley, Norma M identified: GARLAND Science, 2017. Riccucci, and Brian N Williams. “Social Equity in Public 67 Banks, Joseph Ambrose. “Chapter 1.” Essay. In The Administration: A Call to Action.” Perspectives on Public Sociology of Social Movements, 8–8. London: Macmillan, Management and Governance, 2019, 286–87. 1972. 65 Pangriya, Ruchita. “Hidden Aspects of Social 68 Roos, Dave. “7 Ways the Printing Press Changed the Entrepreneurs’ Life: a Content Analysis.” Journal of Global World.” History.com. A&E Television Networks, August 28, Entrepreneurship Research, no. 66 (2019). 2019. https://www.history.com/news/printing-press- 66 Chandra, Yanto, and Linda Wong. “Chapter 4.” Essay. In renaissance. SOCIAL ENTREPRENEURSHIP IN THE GREATER CHINA 69 Dittmar, Jeremiah. “Information Technology and Economic Change: The Impact of The.” Information technology and

15 innovation of mass-producing literature had circulation in 1762. The newspaper gained a many effects. Firstly, it expanded the culture reputation for provocative editorials that of reading. Prior to the printing press, the criticized the British government.75 In economic value of a book was significantly response to an editorial criticizing King higher, because books were made George III’s endorsement of the Paris individually and by hand. Once books could Peace Treaty, Wilkes was charged with be mass-produced, the value became seditious libel, arrested and tried. At his cheaper and more people could afford to court hearing, Wilkes claimed Parliamentary purchase them and subsequently reading Privilege and argued that he was protected became more democratized. Secondly, from arrest as a sitting member of mass production of printed materials Parliament. The court ruled in Wilkes’ favor. resulted in the rapid expansion of ideas, This was a win for Wilkes who is widely leading to cultural revolution. The Protestant regarded as an early champion of ‘radical Reformation was initiated by Martin Luther’s journalism’ and champion of free press.76 95 Theses, a printed treatise articulating Continuing to challenge laws that restricted Luther’s issues against the Catholic freedom of speech, Wilkes published a Church.70 The Renaissance was fueled by ‘pornographic poem’, and was again the dissemination of new theories through charged with obscene and seditious libel.77 print medium,71 and mass-produced This time, however, Wilkes fled to Paris scientific writing was essential to organizing before he could be arrested. For various communities of scientists whose collective reasons, he later returned to England where action fueled the Scientific Revolution.72 The he waived parliamentary privilege and stood ability to mass-produce literature changed trial. He was sentenced to prison time and culture and spurred the creation of his supporters began rallying around the publications that disseminated information court and chanting ‘No liberty, no King.’ in ways the Western world had previously Troops opened fire on the crowd, killing never experienced. Over time, many in what is recorded in the history dissemination of print information became books as St. George’s Field Massacre.78 efficient, giving rise to the world’s first The collective action that catalyzed around newspapers in the 17th Century.73 Not soon Wilkes is regarded as the first mass protest thereafter, libel laws were created as a movement in Western Civilization.79 The means to prevent criticism of the result of this collective action was the government by newspapers.74 government’s acquiescence to policies that The North Briton, a ‘radical newspaper’ provided press protection, particularly when published in London by John Wilkes started reporting on parliamentary procedures. This economic change: The impact of the printing press | VOX, Library - American Law and Legal Information. Accessed CEPR Policy Portal, 2011. June 1, 2020. https://law.jrank.org/pages/22478/Libel-Libel- https://voxeu.org/article/information-technology-and- in-History.html. economic-change-impact-printing-press. 75 Wilkes, John. “Radical Newspaper: The North Briton No. 70 “Reformation CHRISTIANITY.” In Encyclopaedia 45.” The North Briton No. 45, 1763. Britannica. Chicago: Encyclopedia Britannica, 1963. 76 MELLEN, ROGER. “John Wilkes and the Constitutional 71 Santillan, Rita. “The Effect of the Printing Press in the Right to a Free Press in the United States,” 2015. Renaissance in the 15th Century, Italy.” ETEC540 Text 77 Vile, John R., David L. Hudson, and David A. Schultz. Technologies, 2010. “John Wilkes.” In Encyclopedia of the First Amendment. Eau https://blogs.ubc.ca/etec540sept10/2010/11/09/the-effect-of- Claire, WI: Lorman Education Services, 2006. the-printing-press-in-the-renaissance-in-the-15th-century- 78 “The Massacre of St George's Fields and the Petition of italy/. William Allen - News from Parliament.” UK Parliament, 72 McLean, John. “Western Civilization.” The Printing October 31, 2016. Revolution | Western Civilization. Accessed June 1, 2020. https://www.parliament.uk/business/committees/committees- https://courses.lumenlearning.com/suny-hccc- a-z/commons-select/petitions-committee/petition-of-the- worldhistory/chapter/the-printing-revolution/. month/the-massacre-of-st-georges-fields-and-the-petition-of- 73 Lambert, Tim. “A BRIEF HISTORY OF NEWSPAPERS.” william-allen-the-elder/. Yahoo (blog), 2019. http://www.localhistories.org/media.html. 79 Rudbeck, Jens. “Popular Sovereignty and the Historical 74 “Libel - Libel In History.” Libel In History - Law, Origin of the Social Movement.” Theory and Society 41, no. Government, Press, and Freedom - JRank Articles. Law 6 (2012).

16 struggle for freedom of the press permeated corruption to the presidency of Donald into the American struggle for independence Trump. Similar studies by the Pew and freedom of the press was codified in the Research Center demonstrate that trust in US Constitution.80 the government ‘to do what is right most of the time’ has been on the decline since Social movement, innovation, governance, 1958.82 Drawing causal relationships technology, organizational change and between decline in trust of the federal social change are all interconnected. The government and other observable full story of social change cannot be phenomena is outside the scope of this articulated without consideration of the role analysis. However, as already that technology and human evolution play in demonstrated, there is an interwoven expectations of social constructs. And, as relationship between social change, social articulated by J.A. Banks’ seminal book movement, organizational change, describing this process, the role of the technology and outcomes in society. It social entrepreneur who Banks described follows that a declining belief in as the “individual change agent”, cannot be governmental justice will instigate a social overstated. The printing press created response to either demand more justice or conditions in which society could to create more justice. There are many disseminate information quickly and observable changes in society over the past efficiently. This change resulted in an 60 years that suggests that the citizens, the intensifying and unification of people around private sector, academia and researchers common thought and values. In response, are increasingly responding to a perceived the government created laws to censor deficit in social and civic services. information that challenged the power structure. The citizenry then uses its new The Growth of the Social Impact form of unity to demonstrate against the Organization and Management government and to establish a new layer of equity into the human consciousness – in Between 1967 and 1993, the number of this case, this equity is freedom of registered non-profit organizations in the expression and freedom of the press. United States increased 4.5-fold. In 1966, there were roughly 350,000 registered Evidence of a New Era nonprofit organizations, and by 1993, that number had risen to 1.2 million.83 Confidence in the American system and its Comparatively, the US population has ability to, in the words of Martin Luther King grown roughly 40% over the same period.84 Jr., ‘bend towards justice’ is declining. A A cursory comparison of these statistics 2019 Pew Research study demonstrated suggests that while the population has that 75% of Americans believe that trust in grown, the perceived need to provide non- the federal government has been profit and more socially centered services shrinking.81 When probed further, (as measured by the growth of respondents listed a broad range of organizations that perform such work) has problems ranging from money in politics and grown at a much faster rate. By 2015,

80 MELLEN, ROGER. “John Wilkes and the Constitutional Pew Research Center. Pew Research Center, July 22, 2019. Right to a Free Press in the United States,” 2015. https://www.pewresearch.org/fact-tank/2019/07/22/key- findings-about-americans-declining-trust-in-government-and- 81 Rainie, Lee, and Andrew Perrin. “Key Findings about Americans' Declining Trust in Government and Each Other.” each-other/. Pew Research Center. Pew Research Center, July 22, 2019. 83 Burke, Colin. “Nonprofit History’s New Numbers (and the https://www.pewresearch.org/fact-tank/2019/07/22/key- Need for More).” Nonprofit and Voluntary Sector Quarterly findings-about-americans-declining-trust-in-government-and- 30, no. 2 (2001). each-other/. 84 “2017 National Population Projections Tables: Main Series.” US Census, 2017. 82 Rainie, Lee, and Andrew Perrin. “Key Findings about Americans' Declining Trust in Government and Each Other.” https://www.census.gov/data/tables/2017/demo/popproj/201 7-summary-tables.html.

17 nonprofits represented 2.54 trillion dollars in The first legislation recognizing social revenue and 5.79 trillion in assets.85 While enterprises as a tax status was adopted by such organizations can vary in purpose, the Illinois State Legislature in 2013, six scope and services, the sheer growth of the years before the passage of HB1438. The nonprofit and social impact industry Illinois legislature created the L3C corporate demonstrates an expanding interest in status,88 a corporate status for for-profit, addressing salient social and human social enterprise organizations with the challenges in society. stated goal of performing socially beneficial activities.89 Since Illinois formally recognized Social change organizations are not only social enterprise corporate statuses, many limited to nonprofit models. J.A. Banks more forms of social impact corporate introduced the concept of the social statuses have been created in states entrepreneur in the 1970s as a means to throughout the country, including Benefit describe the evolving role of managers in Corps which consider additional social change. Since then, entrepreneurs stakeholders in addition to making a profit have developed formal organizational for their shareholders,90 Social Purpose frameworks to execute social change Corporations which are for-profit entities strategies, and unsurprisingly, these types that have flexibility in considering the social of organizations are called social or environmental issues in managerial enterprises. A social enterprise is defined by decision making,91 Benefit Limited Liability the Social Enterprise Alliance as an Company which grant managers flexibility in “Organization[…] that address[es] a basic decision making for advancing public unmet need or solve[s] a social or benefit,92 and Statutory Public Benefit LLC environmental problem through a market- which are for-profit limited liability driven approach.”86 The first formally known companies that intend to produce a public social enterprise was Ashoka, which was benefit and operate in a responsible and founded in 1980 – eight years after the term sustainable manner.93 This wide variance of social entrepreneur was first coined. corporate statuses indicate growing Created as an incubator for social statutory response to private sector interest entrepreneurs, Ashoka’s mission is to in advancing initiatives for public benefit. “identify and support the world's leading social entrepreneurs, learn from the Currently, there is no dependable resource patterns in their innovations, and mobilize a for reporting the total amount of social global community that embraces these new enterprises in the US. However, a 2018 frameworks to build an ‘everyone a study by Deloitte articulates a growing changemaker world’. "87 interest by organizations to better consider the human element in daily operations and

85 McKeever, Brice. “The Nonprofit Sector in Brief 2018: 90 “What Is a Benefit Corporation? | Benefit Corporation.” B Public Charites, Giving, and Volunteering.” National Center Corp. Accessed June 2, 2020. https://benefitcorp.net/. for Charitable Statistics, 2018. 91 Berger, Michele. “California Social Purpose Corporation: https://nccs.urban.org/publication/nonprofit-sector-brief- An Overview.” Nonprofit Law Blog, November 18, 2015. 2018. https://nonprofitlawblog.com/california-social-purpose- 86 “What Is a Social Enterprise?” Social Enterprise Alliance, corporation-an-overview/. June 11, 2019. https://socialenterprise.us/about/socialenterprise/. 92 Rogers, Callie. “Considering the Benefits of a Benefit 87 “Ashoka Envisions a World in Which Everyone Is a Limited Liability Company.” Workman Nydegger, June 11, Changemaker:: Ashoka: Everyone a Changemaker.” 2018. https://www.wnlaw.com/blog/considering-the-benefits- Ashoka. Accessed June 9, 2020. https://www.ashoka.org/en- of-a-benefit-limited-liability-company/. us/about-ashoka. 93 “Benefit LLCs - A New Option for Socially Conscious 88 “Social Enterprise Law Tracker.” Social Enterprise Law Business Owners.” Benefit LLC: For Socially Conscious Tracker, 2013. https://socentlawtracker.org/. Business Owners | CT Corporation. Accessed June 9, 2020. 89 HILL, JULIANNE. “For More Good: Law Firms Find Other https://ct.wolterskluwer.com/resource-center/State- Ways to Provide Service to Society.” American Bar legislative-updates/benefit-llc-new-option-for-socially- Association, 2017. conscious-business-owners

18 that this interest is reflective of a rising demographics and geographies and a social entrepreneurial culture.94 The snapshot of opinions on political and social increasing focus of the private sector on the issues.98 While these uses of data are ‘human element’ may also be the result of commercial in nature, their method of an increasing focus of social movements collection is faster and more precise than on “challenging of economic authorities, what technology a generation ago could such as corporations, industries and permit. markets.”95 Recent examples of social movements effecting corporate change The internet presents an unprecedented include Starbucks’ 2013 reversal of an in expediency in data collection and analysis. store policy regarding openly carrying a A 2018 study exploring data collection and firearm in public, and in 2014, the new CEO use found that search engines (particularly of Modzilla was removed after it was Google) are highly effective at identifying revealed that he donated to anti-gay user interest and that this form of data causes. In 2020, Quaker Oats removed collection is shifting towards forecasting Aunt Jemima from its breakfast line, after human behavior.99 This evolving use of public outcry of the racist caricature. technology to observe, monitor and forecast All of these changes occurred because of human behavior has inspired researchers to organized public outcry aided by social think about innovative ways to use these media.96 novel technologies to better understand and proscribe human behavior. For example, Academic Discourse and Data during the height of the COVID-19 Collection restrictions, researchers used location based applications to understand population Human Rights Watch reported that during and movement and next likely location for a the Covid-19 pandemic of late 2019 and COVID-19 outbreak. 2020, companies and governments began using mobile data to track movement and Simultaneously, academia continues to monitor the spread of the disease.97 While demonstrate deepening interest in this presents significant privacy concerns, inequality. In her paper, Social Equity in this also represents a growing use of Public Administration: A Call to Action, technology to identify behavioral data and Brandi Blessett, an organizer of the its real time impact in society. Similarly, Mennowbrook at 50 Conference, makes the social media data provides real time case that given the times, Social Equity information for the purposes of expedient needs to be centered more in Public communication on issues or topics of Administration education.100 This argument mutual concern, behavioral attributes of is prefaced by the overwhelming research

94 “The Rise of the Social Enterprise.” Deloitte. Accessed 98 Stieglitz, Stefan, Milad Mirbabaie, Björn Ross, and 2020. Christoph Neuberger. “Social Media Analytics – Challenges https://www2.deloitte.com/content/dam/insights/us/articles/H in Topic Discovery, Data Collection, and Data Preparation.” CTrends2018/2018-HCtrends_Rise-of-the-social- International Journal of Information Management 39 (2018): enterprise.pdf. 156–68. 95 “Handbook of Social Movements across Disciplines.” 99 Jun, Seung-Pyo, Hyoung Sun Yoo, and San Choi. “Ten Essay. In Handbook of Social Movements across Years of Research Change Using Google Trends: From the Disciplines, 206–. Place of publication not identified: Perspective of Big Data Utilizations and Applications.” SPRINGER, 2017. Technological Forecasting and Social Change 130 (2018): 96 Davis , Gerald F., and Christopher J. White . “The New 69–87. https://doi.org/10.1016/j.techfore.2017.11.009. Face of Corporate Activism (SSIR).” Stanford Social 100 Blessett, Brandi, Jennifer Dodge, Beverly Edmond, Holly Innovation, 2015. T Goerdel, Susan T Gooden, Andrea M Headley, Norma M https://ssir.org/articles/entry/the_new_face_of_corporate_act Riccucci, and Brian N Williams. “Social Equity in Public ivism. Administration: A Call to Action.” Perspectives on Public 97 “Mobile Location Data and Covid-19.” Human Rights Management and Governance, 2019. Watch, June 8, 2020. https://doi.org/10.1093/ppmgov/gvz016. https://www.hrw.org/news/2020/05/13/mobile-location-data- and-covid-19-qa.

19 demonstrating inequality in academic the process, helped to create the collective achievement, student discipline, teacher identity on behalf of which students took expectations on student capabilities, high-risk action.”102 Sit-ins were well graduation rate, psychological and mental organized tactics in which churches, health outcomes, health outcomes, provider schools and businesses quietly collaborated treatment and behavior, housing, to train people to peacefully protest.103 perceptions of affordable housing, Regardless, constructing a narrative of government responsiveness to affordable spontaneity was essential to achieving the housing, police engagement by race, movement’s social and political outcomes. environmental injustice and the criminal Polletta later expands on her observation: justice system. Blessett paper highlights the “activists sometimes tell stories deliberately sheer breadth of studies explored, to press for particular tactical options. But demonstrating substantive research in stories also gain currency among group inequality across multiple segments of members that make some problems seem society. While there clearly can be more urgent and some conditions seem research, it is important to note that responsible.”104 considering the Diversity and Inclusion industry only became mainstream in the last Overarching narratives are central to how 20 years, academia has demonstrated a movements form, and in this regard, Black deepening understanding of how inequality Lives Matter and the Civil Rights Movement shows up in everyday life. mirror each other in the way that they use narrative to advance their respective The Technology of Social causes. The principal difference between Movement: Civil Rights and Black the two movements is the technical Lives Matter mechanism through which their respective narratives reach(ed) their intended Cell phones and social media have audiences. It is also evident that the catalyzed and sustained the Black Lives contemporaneous technical mechanism of Matter movement. Black Lives Matter is a each movement affects the shape and social movement that started in 2013, in reach of the movement. response to the acquittal of George Zimmerman, who murdered Trayvon Martin, In the early 1950s, the dominant digital an unarmed Black teenager. Research by technology providing entertainment to The Center for Media and Social Impact households was evolving from radio to concluded that the Black Lives Matters television. This change inspired everyone, movement heavily relies on social media for from politicians to civil rights activists. A learning and disseminating narratives.101 white-owned southern newspaper reported But, use of narrative is not novel to Black that Henry Wallace, a politician who ran for Lives Matter. For example, in her study of president, “would have emulated old John student led sit-ins in the 1960s, Francesca Brown and would have kissed a Negro Polletta demonstrates that organizers were baby—if he could have done it before a intentional in producing a common narrative of sit-ins as being spontaneous because “spontaneity…described student activists and potential activists to themselves and, in

101 Freelon, Deen, Charlton Mcilwain, and Meredith Clark. 103 “Sit-Ins.” The Martin Luther King, Jr., Research and “Beyond the Hashtag.” Washington DC: Center for Media Education Institute, April 5, 2018. and Social Impact, 2016. https://kinginstitute.stanford.edu/encyclopedia/sit-ins. 102 Polletta, Francesca. ""It Was like a Fever ..." Narrative 104 Polletta, Francesca. “It Was like a Fever: Storytelling in and Identity in Social Protest." Social Problems 45, no. 2 Protest and Politics.” Essay. In It Was like a Fever: (1998): 137-59. Accessed June 9, 2020. Storytelling in Protest and Politics, 61–61. Chicago: Univ. of doi:10.2307/3097241. Chicago Press, 2009.

20 television lens.”105 Contemporary civil rights Montgomery, Alabama with a full press activists also believed that television was detail. Cameras rolling, the protestors were likely to reduce racial bias by showing abruptly attacked, beaten and trampled by images of African Americans in non- police on horseback. This moment created stereotypical ways. For example, an article an iconic and highly circulated image in from Ebony Magazine read “a sure sign that which a rabbi and black teenager were both television is free of racial barriers...Negro holding an injured woman and pleading for footlight favorites are cast in every a doctor. The next day, King assembled a conceivable type of TV act—musical, press conference in which he declared: “We dramatic, comedy. Yet rarely have they had are here to say to the white men that we no to stoop to the Uncle Tom pattern which is longer will let them use clubs on us in the usually the Negro thespian’s lot on radio dark corners. We’re going to make them do shows.”106 The Black community saw the it in the glaring light of television.”109 possibility of television being a catalyst of positive representation of Black people. This Reflecting on these iconic moments, Julian would be a departure from Radio Bond, activist and civil rights leader, who entertainment, which could be argued was served as press relations for the Southern popularized on caricatures of African Christian Leadership Conference, wrote in Americans. Notably, the first popular his memoir on the symbiotic relationship network radio show was a minstrel show between the movement and new television performed by two white men (Amos and media: “media craved... a steady diet of Andy). In 1929, Amos and Andy was the bold mass action campaigns in the streets, first radio show to be broadcasted nightly ideally faced by violent white resistance, from coast to coast and to become a which could dramatize the issues at stake national sensation.107 and make good print or electronic copy.”110 Bond articulates that leaders understood the Civil rights researcher Aniko Bodroghkozy interests of the media and how the argues that the early discourse on the role movement was playing to these interests. that television would play in promoting Bond continues: “The Little Rock crisis was equality was noteworthy, “not so much for made for television. It had drama, tension, their optimism that the medium would avoid and the ever-present whiff of real and disseminating familiar and degrading threatened violence.”111 To leaders of the stereotypes, but rather for their conviction Civil Rights Movement, television was an that the medium would ... be a mechanism opportunity to frame a narrative in a for overturning the racial caste system.”108 dramatic, captivating and compelling way, such that there was a good versus evil. It In 1965, Martin Luther King Jr. led an was this repeated imagery that shifted integrated and peaceful march in public opinion in favor of civil rights, which is

105 jkjenk4. “Television News and the Civil Rights Struggle: and the Civil Rights Movement, 19–19. Urbana: Univ. of The Views in Virginia and Mississippi.” Southern Spaces. Illinois Press, 2013. Accessed June 9, 2020. 109 Bodroghkozy, Aniko. “Equal Time: Television and the Civil https://southernspaces.org/2004/television-news-and-civil- Rights Movement.” Essay. In Equal Time: Television and the rights-struggle-views-virginia-and-mississippi/. Civil Rights Movement, 2–2. Urbana: Univ. of Illinois Press, 106 Bodroghkozy, Aniko. “Equal Time: Television and the Civil 2013. Rights Movement.” Essay. In Equal Time: Television and the 110 Madrigal, Alexis C. “When the Revolution Was Civil Rights Movement, 17–17. Urbana: Univ. of Illinois Televised.” The Atlantic. Atlantic Media Company, April 2, Press, 2013. 2018. 107 “Amos ‘n' Andy Show | American Radio Program | https://www.theatlantic.com/technology/archive/2018/04/tele Britannica.” Accessed June 1, 2020. visions-civil-rights-revolution/554639/. https://www.britannica.com/topic/Amos-n-Andy-American- 111 Madrigal, Alexis C. “When the Revolution Was radio-program. Televised.” The Atlantic. Atlantic Media Company, April 2, 108 Bodroghkozy, Aniko. “Equal Time: Television and the 2018. Civil Rights Movement.” Essay. In Equal Time: Television https://www.theatlantic.com/technology/archive/2018/04/tele visions-civil-rights-revolution/554639/.

21 reflected in synchronous studies about violence is perpetuated against Black attitudes towards the Civil Rights bodies.114 Thus a modern movement was Movement. The National Opinion Research born. Center studied these shifting opinions from 1944 - 1965. When respondents were The narrative building process around Black asked the question: ‘should negroes have Lives Matter does not differ significantly the right to integrated Public Services?’, from the narrative building process of the there was measurable growth in support Civil Rights Movement 50 years prior. In the over the twenty-year span. In the case of 1960s, sit-ins were constructed around southern college students, respondents ‘spontaneity’ and protests were staged such answering in the affirmative grew 320% that the media would capture a ‘good versus over the twenty-year period, from 20% in evil’ narrative frame. Contemporaneously, 1944 to 64% in 1965.112 Black Lives Matter has formed around a framing of narrative repeatedly The Black Lives Matter movement was demonstrating social disregard for Black formed in an era with a completely different lives, typically at the hands of police. Many media distribution model. Firstly, the title of major Black Lives Matter demonstrations the movement itself demonstrates the have been triggered by the murders of black characteristics of how modern people at the hands of police (good v. evil). communication and media affect social Episodes of unwarranted killings and movement and change. The title, “Black subsequent protests include: Trayvon Lives Matter” started as a hashtag in 2013 Martin, Eric Garner, Michael Brown, Laquan after the acquittal of George Zimmerman, a McDonald, Tamir Rice, Freddie Gray, neighborhood watch volunteer who killed Walter Scott, Sandra Bland, Philando Trayvon Martin, an unarmed black teenager Castile, George Floyd and many more. In on unvalidated suspicion that he had the 1960s, police brutality in response to nefarious intentions. After the peaceful protest wasn’t unfamiliar to announcement of the acquittal, Alicia Garza, activists. Their intention was to bring a California-based community organizer awareness through the media to this wrote an impassioned post on Facebook brutality. Similarly, violence at the hands of signing it with ‘our lives matter’. Her friend, police is a common Black experience in the 300 miles away, shared the post and signed United States. A CATO Institute report it with ‘#BlackLivesMatter”. Together, they Stated that “African Americans (73%) are decided to organize around the hashtag.113 far more likely than whites (35%) and They called on other organizers, who began Hispanics (54%) to say that police are too spreading the message ‘#BlackLivesMatter’ quick to use lethal force.”115 A YouGov through posts on other social media study reported that 63% of Black websites, window signs, events and any respondents indicated that they were instance in which they could gain visibility very/somewhat worried about police using around the hashtag. The hashtag became a deadly force, compared to 21% of white slogan for instances in which Black respondents.116 Americans have been treated unfairly, and in many cases, in instances in which

112 Schwartz, Mildred. “Trends in While Attitudes Towards 2020. https://www.cbsnews.com/news/how-the-black-lives- Negroes.” Chicago: NORC - University of Chicago, 1967. matter-movement-changed-america-one-year-later/. 113 Day, Elizabeth. “#BlackLivesMatter: the Birth of a New 115 Ekins, Emily. “Policing In America.” CATO Institute, 2016. Civil Rights Movement.” The Guardian. Guardian News and 116 Frankovic, Kathy. “More African-Americans Fear Media, July 19, 2015. Victimization by Police than Fear Violent Crime.” YouGov, https://www.theguardian.com/world/2015/jul/19/blacklivesma March 15, 2019. tter-birth-civil-rights-movement. https://today.yougov.com/topics/politics/articles- 114 “How a Death in Ferguson Sparked a Movement in reports/2019/03/15/black-americans-police. America.” CBS News. CBS Interactive. Accessed June 9,

22 Furthermore, these narrative frames are sociability that they were experiencing both less contrived than those of the Civil Rights at university and in their personal lives.”121 Movement and actually are more One such scientist, Dr. Murray Turoff, was spontaneous because technological working in various defense research roles innovation has lowered the production for think tanks and the US government in mechanisms required in stories produced the 1970s. His research centered simulated for television. A central element in a majority defense games, where he needed to of the police-involved murders that have connect players remotely to successfully catalyzed protest by the Black Lives Matter execute the games. Subsequently, his movement is the use of cellphone footage. interest in computers narrowed in on the A suite of newspaper articles and “possibility of computerized conferencing … constitutional papers study both the to provide a way for human groups to increasing use of cellphone footage and the exercise a 'collective intelligence'”.122 His ongoing debate around the legality of such interest was born out of the need for real footage as tools for galvanizing public time collaboration that required increasing discourse and legal action on police capacity of automated interconnectivity. accountability.117 118 Cellphone footage has become so common that the ACLU, as well In technical terms, micro-computing is “a as other groups, have developed cellular compact computer, with less capacity and apps to expedite capturing of such capability than a minicomputer, consisting of footage.119 120 The historical path towards a microprocessor and other cellphone footage and its use in policing components. 123 The ability to produce transparency is an important innovation ” towards narrative development in the Black smaller and cheaper computers is the Lives Matter movement and it is rooted in a driving force behind every tech enabled technological evolution that must be noted hardware, from copy machines to cellular to fully understand the relationship between devices. Research demonstrates that the technology and the Black Lives Matter use of micro-computers has brought movement. efficiency to the economy through a cycle of labor cost reduction and increasing Since the 1970s, the computer science precision in production.124 But micro- community has been interested in a computers have also brought social mechanism through which humanity could efficiency to society. A New York Times be connected around computing systems. article titled “The Microprocessor’s Impact Technology sociologist Patrice Flichy on Society” by John Markoff notes that the observed that scientists who were “microprocessor’s greatest social promise is developing micro-computing in the 70s were that interactive network technology will “also social innovators. They defined the ultimately recreate the sense of community framework of use of this new type of that television promised but failed to computing on the basis of the new forms of

117 Reardon, Conor M. “Cell Phones, Police Recording, and 120 Villagra, Hector. “The Whole World Is Watching.” Mobile the Intersection of the First And Fourth Amendments.” Duke Justice California, May 3, 2015. Law, 2013. https://www.mobilejusticeca.org/el-mundo-entero/. https://scholarship.law.duke.edu/cgi/viewcontent.cgi?referer= 121 Flichy, Patrice. “L'individualisme Connecté Entre La https://www.google.com/&httpsredir=1&article=3407&context Technique Numérique Et La Société.” Réseaux 124, no. 2 =dlj. (2004): 17. https://doi.org/10.3917/res.124.0017. 118 Potere , Michael. “Who Will Watch the Watchmen?: 122 Rheingold, Howard. “Tools For Thought .” MIT Press, Citizens Recording Police Conduct .” Northwestern 1995, 231–31. https://doi.org/10.21428/a1bd113d. University Law Review 106, no. 1 (2012). 123 “Microcomputer.” Dictionary.com. Dictionary.com. 119 “Phone Cameras and Apps Help Speed Calls for Police Accessed June 9, 2020. Reform.” The New York Times. The New York Times, April https://www.dictionary.com/browse/microcomputer. 8, 2015. 124 Warnke, Jacqueline. Monthly Labor Review 119, no. 7 https://www.nytimes.com/2015/04/09/technology/phone- (1996): 21–21. cameras-and-apps-help-speed-calls-for-police-reform.html.

23 deliver.”125 Markoff goes on to note that users and producers can engage during the technological transition from with one another; radio to television, scholars predicted that (3) Sharing, in which users exchange television would help create a global village, and distribute content allowing for but that actually it eroded many social users to be both producers and traditions and failed to form further consumers; connectivity (this is certainly debatable, as (4) Presence, which demonstrates television has socialized new norms and accessibility of users and allows for behaviors through culture development that, consumers to directly engage with maybe only tangentially, create new social content producers to content behaviors and implicitly new social creators; traditions). Now that the internet is (5) Relationships, which is the action becoming a dominant entertainment and that brings people together by social medium, and is replacing television, it similar connections (i.e. friends on is forming communities without geographic Facebook or connections on limitation through virtual engagement LinkedIn); around common values. 126 Analogously, (6) Reputation, which is the degree to radio gave way to television which gave way which producers and consumers to the internet and social media. Each layer present their values and politics; and of entertainment carried a different suite of (7) Groups, which is the formal tools that were utilized by activists seeking formation of community and sub- social equality. Television was used to communities. repeat imagery of integrated crowds peacefully assembling and being attacked The building blocks of social media by ominous police, unprovoked. The Black perpetuate conversations in which problem- Lives Matter movement uses the same solving, learning and open innovation128 are imagery format, but instead, relies more on interwoven into content that is spread authentic spontaneity in virtual communities throughout the world. Analogously, when to spread awareness, a function not Alicia Garza first posted about the acquittal available with television as a medium. of George Zimmerman, her friend, who was also connected to her online, built on this A 2011 study outlined seven ‘functional inspired action. This repeated process of blocks’ of social media that go beyond social cause and effect through social traditional media to consumer consumption media are the nuts and bolts of how models that were the construct of television narratives have been formed in the Black and early internet entertainment.127 These Lives Matter movement. functional blocks include: (1) Identity, which permits demographic The Civil Rights Movement relied on an data like race and gender to be intentionally clandestine network of targeted by content producers; organizations and sympathizers to train (2) Conversation, which is the nexus of participants who helped create visible online community building and is protests with the appearance of spontaneity. formed by an environment where The treatment of protestors was then

125 Markoff, J. “The Microprocessor's Impact on Society.” 127 Kietzmann, Jan H., Kristopher Hermkens, Ian P. IEEE Micro 16, no. 6 (1996): 54–59. Mccarthy, and Bruno S. Silvestre. “Social Media? Get https://doi.org/10.1109/40.546565. Serious! Understanding the Functional Building Blocks of 126 Cottrell, Barbara Flowers, and Mary Chayko. Social Media.” Business Horizons 54, no. 3 (2011): 241–51. “Connecting: How We Form Social Bonds and Communities https://doi.org/10.1016/j.bushor.2011.01.005. in the Internet Age.” Contemporary Sociology 32, no. 3 128 Paniagua, Jordi, and Pawel Korzynski. “Social Media (2003): 325. https://doi.org/10.2307/3089175. Crowdsourcing.” Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship, 2017, 1–5. https://doi.org/10.1007/978-1-4614-6616-1_200009-1.

24 disseminated through formal television focused on equal protection in voting, public media channels and the narrative of accommodations and desegregation. These peaceful protests facing violence was protections are also a form of Block formed. Conversely, the Black Lives Matter Equalities, but they are also forms of Simple movement was structured around catalytic Individual Equalities (the right to vote), action in response to moments that are characterized by every person having the captured in real time, on camera and spread same fundamental right and Equalities of through social media. The distribution Opportunities (everyone having access to a patterns on social media are such that job), characterized by equality in the consumers are also producers and thus prospect and means of opportunity. spontaneity of the movement is more authentic. In both cases, it is the technology In terms of movements, The Black Lives of the moment that has empowered each Matter movement is a substantive departure movement to reach target audiences and from earlier movements, because its focus affect social discourse and public opinion on is fundamentally on outcomes of processes, civil and social rights. An ABC News poll rather than the right to processes found that in June 2020, during the protests altogether. Black Lives Matter started stemming from the murder of George Floyd because of an acquittal, widely regarded as (which was filmed by cellphone footage and unjust. The movement has been sustained disseminated on social media), 74% of by continual criticisms of such processes Americans, including 70% of white (the judicial and policing systems) and their Americans, believe that the murder of failure to result in reasonably fair outcomes. George Floyd was a sign of broader Simultaneously, organizations, academia problems in the treatment of African and research have increasingly Americans by the police.129 Comparatively, demonstrated a broadening alignment with a similar poll conducted in 2014, after the the view that despite access, outcomes are murder of Michael Brown, reported only poor for large portions of society. 43% of Americans held the view that his Organizations focused on better social death was a sign of broader problems.130 outcomes have grown exponentially since the Civil Rights Movement of the 1960s. The New Era of Equity: Measured Equity Academic research has produced increasingly complex analysis Movements are intended to create specific demonstrating a deepening understanding social change. The aim of the first mass of the social complexities of discrimination movement recorded in Western history, in society and how it shows up in education, inspired by John Wilkes, was to establish housing and healthcare. It is not that certain more freedom of speech. If assigned a groups don’t have access in the present Categorical Assessment as designed by day, but rather that their access is materially Frederick, then it could be said that this was different than privileged counterparts. And a movement for Block Equality, technology provides real time visibility into characterized by equality between groups or instances of unfair systematic outcomes, subclasses. Wilkes was seeking freedom of further demonstrating the need to explore speech equal to the freedoms guaranteed to outcomes-oriented equality. If assigned to a nobility and the King. The Civil Rights category of Social Equity, it can be said that Movement of the 1960s in the US was

129 Karson, Kendall. “74% Of Americans View George 130 Karson, Kendall. “74% Of Americans View George Floyd's Death as an Underlying Racial Injustice Problem: Floyd's Death as an Underlying Racial Injustice Problem: POLL.” ABC News. ABC News Network, 2020. POLL.” ABC News. ABC News Network, 2020. https://abcnews.go.com/Politics/74-americans-view-george- https://abcnews.go.com/Politics/74-americans-view-george- floyds-death-underlying-racial/story?id=71074422. floyds-death-underlying-racial/story?id=71074422.

25 the Black Lives Matter Movement is focused LEGISLATION IN A NEW ERA: on the Value Equality, characterized by the HB1438 AND MEASURED individual value received. This movement is emblematic of a larger social shift towards EQUITY observing, measuring and optimizing for outcomes of equality rather than equality of Illinois HB1538, the Cannabis Regulation access. and Tax Act, is a sweeping measure and includes a foundational framework for The current spotlight on equality of legislation crafted under an Era of outcomes in organizations, research, Measured Social Equity. The legislation is academia, technology and social movement already recognized by policy analysts as a signals a new era of Social Equity focused framework for equitable execution of on metrics. It is suggested that this new era cannabis legalization. As previously state is the era of Measured Equity, characterized The Brookings Institute recently published a by an emphasis on the Value Equality of report calling on the creation of a Cannabis Assessments of Social Equity and based on Opportunity Agenda and urging “Federal the principle that access to government, policymakers [to] look to the model social processes and institutions is not employed in the State of Illinois.”131 substantive enough to acquire absolute Additionally, cannabis activists are in equality among all people in society. Rather, agreement that HB1438 at least attempts to it is the outcome of access that is the bring forth an innovative structure that means through which structurally considers the equitable participation of disadvantaged groups receive and disenfranchised communities.132 The materially experience equality in the legislation is foundational for this new era of distribution of goods and services. Measured Equity because it includes every Categorical Assessment of Social Equity, As technology continues to create more creates cycles of investments, structures for precision in observing behaviors, the optimizing the law through advisory and Measured Era of Social Equity will be research parameters and creates cycles of characterized by continual optimization of investment that continue to expand measurable outcomes for systematically programs that affect targeted disadvantaged oppressed populations in academic populations. research, organizational management, governance and society as a whole. Over Assessments of Equality in the next decade, it can be expected that HB1438 CEOs, legislatures and citizens will create As it relates to Social Equity policy creation previously unseen and even experimental and implementation, HB1438 is a unique approaches to ensuring that every member legislative framework. The law consists of of society is the material recipient of equal every Assessment of Social Equality as participation in public accommodations, defined by Frederickson’s original six private organizations and that generally Assessments. This is structurally different expected freedoms are evidenced in than civil rights policies which focused on measurable outcomes in society. discrimination in the workplace and public

accommodations, and thus produced

legislation that was limited to Block Equalities and Equalities of Opportunities.

131 Henry-Nickie, Makada, and John Hudak. “It Is Time for a 132 Thomas, Nick. “Will Illinois Change the Social Equity Cannabis Opportunity Agenda.” Brookings. Brookings, Landscape for the Marijuana Industry?” Marijuana Business March 23, 2020. Daily, October 8, 2019. https://mjbizdaily.com/will-illinois- https://www.brookings.edu/policy2020/bigideas/it-is-time-for- change-the-social-equity-landscape-for-the-marijuana- a-Cannabis-opportunity-agenda/. industry/.

26 sustained support of groups in need HB1438 provides provisions for all six towards the creation of equitable Assessments: conditions. Additionally, the (1) Simple Individual Equalities is legislation provides for educational present, although debatable, services for communities because one cannot simply open a disproportionately affected by the cannabis business. In other words, War on Drugs. it's not like voting, where if you wish (5) Equalities of Opportunity is to vote you can. To open a cannabis represented in the design of the business, an individual must obtain a Social Equity Program, which license which is limited by statute. acknowledges a fundamental Nonetheless, anyone can obtain a equality in capability to participate in license, with limited exception, and the market, if resources are certain people are actually equalized for participants. encouraged. Additionally, it is (6) Finally, the Value Equality is reasonable to interpret the City of demonstrated through the support Chicago’s cannabis license lottery mechanisms designed to ensure system133 as a form of Simple equitable outcomes. The law creates Individual Equalities, because all advisory, investment and research people can apply to enter the lottery, functions to establish and monitor and there are randomized chances conditions under which there is that person will receive a license. continued optimization of equitable (2) Segmented Equality is observed in administration of the law and to participation in the marketplace, ensure that the law continues to once an applicant receives a license adhere to its Social Equity to participate in the marketplace. objectives. With a license, Social Equity Applicants are regulated in the same investment in health research on long term way that any other applicant is effects to inform the public about usage side regulated; however, they are effects). Further evidence of the legislation’s prioritized in the license grantee focus on measured outcomes is the process in the interest of increasing intentional lack of referenced protected minority participation. classes. The law relies on monitoring (3) Block Equality is observed in the outcomes relative to geographic and legislation through the applicant experiential classifications, such as zip scoring system. The creation of the codes and people determined to have been Social Equity Applicant scoring disproportionately harmed as a result of the system is an acknowledgement of War on Drugs. The terms Black, Hispanic, barriers to entry by minority business White, Woman, Gay, Immigrant or any other owners. protected class by federal statue is absent (4) Domains of Equality is present in the from the Bill. law through continuing resources to grantees of Social Equity Licenses Creating Equity versus Reform for and investments in continuous Equity outreach to communities to sustain applications from underrepresented HB1438 establishes a new regulated market communities. In this way, there are and structures the market such that certain services being ‘marked’ for advancing equality is a central element for

133 Bowean, Lolly. “Chicago Holds Lottery for Chance to Sell 2019, Chicago holds lottery for chance to sell legal weed in Legal Weed in the City: ‘African American Participation at the city: ‘African American participation at this point is zero. This Point Is Zero. That’s a Problem.’” Chicago Tribune, That’s a problem.’

27 its administration and for the companies that specific demographic groups. For example, operate in the market. Necessarily, civil the banking industry executed redlining rights-era legislation intended to expand policies for decades to block African protections for certain classes of people not Americans from acquiring mortgages and experiencing equality under the law. It financial support based on their zip codes. cannot accurately be said that HB1438 This has had a measurable multi- reformed existing law (except laws generational impact on African regarding possession and retail of Americans.134 HB1438 provides a cannabis), because there was no previous framework for reparative actions for groups cannabis market in which to introduce that have been systematically harmed by equity reforms. social and legal structures that have aided structural oppression. Nonetheless, it's important to highlight that the law is an example of Social Equity There are at least six cyclical reparatory legislation that is not focused on reform of investment mechanisms that have been previously existing social construct for at incorporated in the Cannabis Regulation least two reasons. Firstly, HB1438 provides and Tax Act market structure. Each a precedent for how new emerging markets mechanism receives investment as long as may tackle issues of systemic inequality. In tax and licensing revenue is collected from an era in which new technology is rapidly the industry. These mechanisms include: (1) emerging and new goods and services are drug treatment investments to fund public being created, new markets are forming, education and analysis of public health including around home sharing, ridesharing, impacts of cannabis, (2) a community artificial intelligence and IOT. Therefore, services fund to address substance abuse new technology markets will form in a and prevention of mental health concerns, society that is systemically unequal and (3) the R3 program to address the impact of policies will need to account for such economic disinvestment, violence and the systematic barriers when crafting legislation historical overuse of the criminal justice that permits new operators. system, (4) expungement administrative costs to assist with the administration of Secondly, because HB1438 creates a new expunging the records of non-violent drug market, it is ‘constitutionally’ and structurally related convictions, (5) the Low-Interest novel. Therefore, its equitable effect Loan Program to support Social Equity provides an authentic case study of how Applicants with loan and grant funds and large institutional industries may be technical assistance, and (6) Social Equity comprehensively and structurally reformed Applicant recruitment to increase the to introduce drastically new frameworks of number of oppressed individuals who equity. Many US markets have had benefit from the newly formed cannabis disproportionately negative effects on market.135

134 Appel, Ian and Nickerson, Jordan, Pockets of Poverty: Available at SSRN: https://ssrn.com/abstract=2852856 or The Long-Term Effects of Redlining (October 15, 2016). http://dx.doi.org/10.2139/ssrn.2852856 135 “Adult Use Cannabis Summary.” State of Illinois, 2019.

28 Figure 2. Flowchart of Reparatory Investment Mechanism in HB1438

Corporate Citizenship and Social particularly noteworthy, because it suggests Enterprise that as legislators begin reforming industries to be more equitable, they might require In some ways, it is unsurprising that some organizations in select industries to HB1438 also includes innovative provisions become formal social enterprise requiring businesses operating in the businesses. cannabis market to comply with social impact initiatives. After all, the State of HB1438 doesn't require social enterprise Illinois was the first state to create a legal status, but it does require program adoption structure for Social Enterprise business that mirrors the types of programs a social models.136 enterprise would establish. In other words, as revenue increases, so does investment Additionally, large marketplace operators in social impact initiatives. The reason why that had been permitted to operate under a unique legal formation was needed for medicinal cannabis laws since 2013 must social enterprise companies is twofold: also adopt a Social Equity Inclusion Plan.137 special tax consideration and fiduciary These plans permit the business to choose flexibility. Corporations can be liable if it is between one of four types of social impact determined that they are not acting in the programs in which to invest up to 5% of best interest of the corporation.138 This does sales revenue. These programs range from not mean that corporations must only be industry training and education to small concerned with profit and ‘maximizing business incubation. This provision is shareholder value’, but it does mean that

136 “Social Enterprise Law Tracker.” Social Enterprise Law 138 Cornell Information Technologies. “Common Tracker, 2013. https://socentlawtracker.org/. Misunderstandings About Corporations.” Cornell Law 137 Illinois General Assembly, State of Illinois, 2019. P. 66. School. Accessed June 9, 2020. Illinois State Legislature, https://www.lawschool.cornell.edu/academics/clarke_busine www.ilga.gov/legislation/101/HB/PDF/10100HB1438lv.pdf. ss_law_institute/corporations-and-society/Common- Misunderstandings-About-Corporations.cfm.

29 there is a reduced discretion in corporations principally Black Lives Matter and acting in ways that are not exclusively self- increasing research on the lived interested. The Diversity Era of Social experiences of underrepresented Equity underscores this interest, when firms people in society – has given rise to became concerned with diversity only after a call for outcomes-based equity. It it was (erroneously) reported that diversity is no longer enough for would be essential to survival by the year governments, organizations and 2000.139 A social enterprise corporate status society at large to give access to empowers corporations to choose systematically oppressed groups; it organizational structures that are both is now required that society respond interested in advancing society as a whole, to the unequal material outcomes of and the growth and profitability of the firm. access and underlying reasons why HB1438 requires, at least some, those outcomes are materially consideration of social impact by the different for different segments of the cannabis market’s largest players. population. The contemporary demands for structural reforms CONCLUSION elevated by the Black Lives Matter movement, aided by technology and The history of Social Equity is not well reinforced by changing documented in regard to the larger societal organizational norms, deepening context in which the Social Equity academic research and broadening framework has evolved. There are at least behavioral data, demonstrate three eras of Social Equity as presented in dimensional shifts in society as we this analysis, with distinct characteristics. know it and point to the rise of a new (1) The Non-Discrimination Era of era of Social Equity. Social Equity is the era in which (3) The Measured Era of Social Equity Social Equity policies centered on is characterized by continual reducing discrimination in public optimization of measurable accommodations and employment, outcomes for systematically resultant of the Civil Rights oppressed populations in academic Movement. This is also the era that research, organizational formally birthed Social Equity as it is management, governance and understood in Public Administration society as a whole. HB1438 is a today. legislative response to these (2) The Diversity Era of Social Equity referenced dimensional shifts. If evolved out of a retreat of executed in the way the legislation is government enforcement of EEOC designed, HB1438 shows promise in and civil rights protections and a providing legislators with a tool for rising demand for organizational creating equitable markets and cultural competency (diversity programs, as well as reforming long- training) by firms positioning standing institutional markets and themselves for long term survival in programs that have statistically an increasingly diversified caused harm to systematically workplace. Each of these eras are oppressed populations. Research attributed to contemporaneously and monitoring of the effects of changing technological and social HB1438 is a necessary next step. conditions. Modern movements – The effects of the law should be studied by academic researchers of

139 Johnston, William, and Arnold Packer. “Workforce 2000: Work and Workers for the 21st Century.” Indianapolis, IN: Hudson Inst., June 1987.

30 Social Equity so that learnings can contribute to increasingly nuanced legislative Social Equity frameworks, and so that governments can be aided in provided structural reform throughout state and federal legislatures all over the country.

Jared Lewis [email protected]

Jared is an author, entrepreneur, and public policy expert, with a focus on equity policy. He received his Master of Public Policy from the University of Chicago and is a native Chicagoan from the city’s South Side.

Previously, he was Global Program Manager of Airbnb’s Global Public Policy team and is currently a Commissioner with the City of Chicago’s Dept of Planning & Development Special Service Area Program and Board Member of the Howard Brown Health, Board of Directors.