Understanding and Confronting the Prison-Industrial Complex An Overview for Philanthropists OCTOBER 2018 UNDERSTANDING AND CONFRONTING THE PRISON-INDUSTRIAL COMPLEX ABOUT THE REPORT As part of its commitment to learning, Robert Wood Johnson Foundation engaged Arabella Advisors to conduct a study of the intersections between the private US prison system and the work of foundations. The views expressed in this report do not necessarily reflect the views of the foundation. ABOUT ARABELLA ADVISORS Arabella Advisors helps foundations, philanthropists, and investors who are serious about impact create meaningful change. We help our clients imagine what’s possible, design the best strategies, learn what works best, and do the work necessary to turn their visions into reality. To learn more, visit www.arabellaadvisors.com. 2 UNDERSTANDING AND CONFRONTING THE PRISON-INDUSTRIAL COMPLEX CONTENTS Introduction 4 Mass Incarceration and the Prison-Industrial Complex 5 Opportunities for Philanthropists to Help Drive Change 6 An Overview of the Prison-Industrial Complex 7 The Prison-Industrial Complex Spans Multiple Sectors 7 Strategic Intervention Points Within the Prison-Industrial Complex 10 Next Steps for Concerned Philanthropists 17 Support Additional Research on the Prison-Industrial Complex 17 Divest from Egregious Actors 17 Implement Investor Activism and Capital Market Strategies 19 Matching Types of Actors with Potential Philanthropic Strategies 20 Conclusion 21 Acknowledgments 21 3 UNDERSTANDING AND CONFRONTING THE PRISON-INDUSTRIAL COMPLEX Introduction PHILANTHROPISTS can help address over-incarceration in America and the serious harm it does to communities by supporting efforts to better understand and confront what criminal justice experts call “the prison-industrial complex,” the network of companies that currently profit from the US prison and detention system. Through their endowments, philanthropists may be unwittingly invested in corporations within the prison-industrial complex whose efforts are at odds with funders’ charitable missions and commitments to social, economic, and racial equity. This report provides a high-level overview of the prison-industrial complex for philanthropists, identifies several opportunities for potential intervention, and begins to outline possible strategies that concerned funders and impact investors can use to help curtail its growth and influence—and thereby work to end the current era of mass incarceration. We hope that the report will prove helpful to funders that are concerned about the ways in which their unintentional investments in the prison-industrial complex may undermine their values and priorities and seek to understand how they can remediate those harms. e recognize that We also recognize, however, that our nation’s prison and detention ending the era of mass ending the era of mass system and represents a potential Wincarceration will incarceration will require a better entry point for disrupting and require much more than is understanding of ways to beginning to change that system. outlined here. It will require effectively confront the prison- fundamental reforms to our industrial complex: the network Curtailing the influence of the criminal justice system, including of thousands of companies that prison-industrial complex and changes to unjust, unfit, and are currently involved, in various holding the worst actors overly punitive sentencing policies ways, in the detention, accountable will require a broad and drug laws, as well as reforms incarceration, and confinement of array of governmental, nonprofit, of prosecutorial and policing human beings across the United and corporate actors. practices that correlate with States. As we describe in more Philanthropists can play a role in soaring prison populations. It will detail below, this network tackling this part of the mass require funding for programs extends across a wide range of incarceration problem by using designed to build communities, sectors and includes a variety of their endowments and grant- reduce crime, and break down the actors, from companies accused making capital to increase pathways and practices that of egregious and exploitive understanding of the prison- currently channel far too many practices to others that may industrial complex, expose and people into prisons, jails, and simply be supplying services to stigmatize flagrant practices other detention centers. It will prisons to still others that may going on within it, and counter the require more support of racial not even realize that prison labor political influence of those justice and equity, work in which is part of their supply chains. This seeking to preserve and extend many funders are increasingly network is part of what enables, the current system of mass engaging. perpetuates, and helps to shape incarceration. 4 UNDERSTANDING AND CONFRONTING THE PRISON-INDUSTRIAL COMPLEX Mass Incarceration and the Prison-Industrial Complex MASS INCARCERATION in the United States harms both individuals and communities, with particularly devastating effects on communities of color, and it often does so without advancing the public safety objectives that incarceration purports to serve. With 2.3 million people in confinement and nearly three percent of the population under some form of correctional supervision, the United States imprisons far more of its people than any other country.1 Over-incarceration disproportionately impacts economically distressed communities and is a significant driver of racial inequality. Those convicted of felony offenses—primarily blacks and Latinxs—suffer profound, long-term collateral consequences, including, but not limited to, lost voting and civil rights and legalized discrimination in employment, housing, and access to public benefits. espite the significant harm correction at the local, state, and Activists and others charge it does to communities, federal levels have handed billions numerous companies within this Dmass incarceration is big of dollars in contracts to private complex of engaging in egregious business. Skyrocketing firms. This has led to a network of and exploitive practices. Some incarceration rates in the United thousands of companies that companies have also played a role States have turned the criminal profit from mass incarceration, in advocating for the public justice system into a multi-billion ranging from the companies that policies that have driven mass dollar industry, with federal, state, operate private prisons to the incarceration and increased and local governments spending subcontractors that provide immigrant detention. Others are $80 billion on incarceration in prisons with telecommunications, companies that profit from 2013 alone.2 In an effort to achieve transportation, food vending, and conducting business within and cost savings, departments of many other goods and services. across the network. Racial composition of the incarcerated population in the United States* % OF US INCARCERATED NATIONAL RACE/ETHNICITY % OF US POPULATION POPULATION INCARCERATION RATE White (non-Hispanic) 64% 39% 450 per 100,000 Hispanic 16% 19% 831 per 100,000 Black 13% 40% 2,306 per 100,000 SOURCE: PRISON POLICY INITIATIVE, USING US CENSUS DATA. *Does not add up to 100% 1 Wagner, Peter. “Mass Incarceration: The Whole Pie 2018.” Prison Policy Initiative. 14 March 2018. [Link] 2 Executive Office of the President of the United States. “Economic Perspectives on Incarceration and the Criminal Justice System.” April 2016. [Link] 5 UNDERSTANDING AND CONFRONTING THE PRISON-INDUSTRIAL COMPLEX Over the last 40 years, due to State and Federal Prison Population a surge in tough-on- crime laws such as three-strikes 2MM laws, mandatory 1.5MM minimums, and truth- in-sentencing laws, 1MM the number of people incarcerated in 0.5MM the United States has quintupled. 0 1970 1980 1990 2000 2010 2020 *DOES NOT INCLUDE US JAIL POPULATION. SOURCE: BUREAU OF JUSTICE STATISTICS Opportunities for Support organizations and entities that are engaged in Philanthropists to Help initiatives that are working to harmful practices, and can Drive Change counter the advocacy efforts potentially motivate other Much work remains to be done, of politically active corporations corporations to cease doing and we see several areas where that profit from mass business with them unless and philanthropists can play valuable incarceration. Various companies until they reform how roles in beginning to confront the within the prison-industrial they operate. Meanwhile, prison-industrial complex. complex provide money to investment in positive solutions lobbying groups that strengthen can begin to help rebuild Support research to map the and perpetuate policies that help damaged communities. network of companies involved in drive mass incarceration. Those the prison-industrial complex in working for better policies need Consider investorSTATE activism and PRISONERS greater detail. Such mapping can financial support to overcome capital market strategies. Donors raise awareness of the prison- potential opposition from groups and investors may also want industrial complex, identify and that benefit from the continuation to use theirFEDERAL capital and influence expose its harmful practices, and of “business as usual” in the sector. to take equityPRISONERS positions in empower advocates to counter companies that are associated the influence of those seeking Divest from egregious actors with the prison industry from to advance policies tied to profits and invest