Social Equity As it Pertains to the Cannabis Industry

In just two decades, cannabis has gone from being a taboo to a booming business. Gone are the days when weed was only available in black markets, and a gram of the substance would cost you years of your life if arrested for it. Now, it's in corner shops and fancy dispensaries.

This has been a blessing for many people who now have successful cannabis businesses. However, the fact remains that it is a sore spot for many others, especially people of color.

Social equity often comes up in discussions around cannabis which makes it a term that anyone in the business should familiarize themselves with. Well, there are a slew of other terms to learn, but social equity sits pretty high on that list.

The term "social equity" refers to the justice and fairness of social policy. It can be defined as impartiality, fairness, and justice for all persons in its most basic form. This entails considering systemic inequities in order to ensure that everyone has equal access to the same opportunities and outcomes. 

In other words, no one should endure systematic disparities based on race, ethnicity, gender, economic status, or physical and mental handicap. This is done without overlooking or downplaying the existence of inequities, as equity tries to bridge the gaps.

Social equity is not just a concern in the cannabis sector; decision-makers across the board use equity as a basis to help formulate equitable distributions of resources, power, and outcomes. Though it is a shared concern and lens, equity manifests itself differently in various sectors in terms of implementation, impact, programs, and policies.

Social impact in the cannabis industry

It is hard to ignore the giant rift that has resulted from the legalization of cannabis. It has raised difficult questions for governments and businesses, and people interested in exploring the burgeoning market. Some would even opine that the legalization has taken some edge out of Mary Jane.

Although the legal cannabis sector is booming, the diversity issue continues to be a stumbling block for people trying to indulge into the developing state-legal cannabis market. That aside, the industry has long suffered glaring inequity that has become quite the hassle to bridge. The gap has been exacerbated by the war on drugs, which has disproportionately impacted communities of color and other members of minority populations. 

Social equity in the cannabis sector centers around the involvement of people of color in all aspects of the industry, from cultivation to legislation. The question remains, is it possible to achieve equity in the face of misinformation and frequently altering stakeholder interests and policies? 

On the other hand, how can the cannabis sector help businesses and individuals disadvantaged because of their racial ethnicity, gender, or socioeconomic status?

The war on drugs and its ongoing effects

It is an open secret that many people have spent decades behind bars for cannabis-related crimes, most of whom are people of color. As a matter of fact, even as the cannabis industry continues to boom and legalization sprouts branches in many parts of the world, there are still many people of color going down for cannabis-related crimes and others still incarcerated. Decades of arrests, convictions, and incarceration for cannabis-related crimes have harmed communities across the country in structural, financial, and emotional ways.

This has been a difficult topic of discussion, especially with the federal-state divide. The legalization of cannabis is one part of the equation, but righting the wrongs remains crucial in confronting inequalities head-on through policies that include social and economic justice.

Social equity laws are intended to ensure that persons from communities that have been disproportionately disadvantaged by cannabis prohibition and discriminatory law enforcement are involved in the emerging legal cannabis business. Policymakers are seeking to address concerns that outsiders are setting up legal cannabis enterprises and benefitting from the same activities for which their less fortunate neighbors have been caught and sentenced to prison for a few years ago.

Where black-owned businesses fit in the equation

Even with the boom and ongoing legalization, only 1 in 5 cannabis businesses are owned by minorities, according to a 2019 report. This clearly depicts the glaring gap that plagues the industry as minority acceptance into the industry is still wanting.

The upside is that black-owned cannabis businesses are growing. As part of their plans to broach the industry, some black-owned companies are incorporating social equity as part of their business plan to drive forward the conversation. Achieving social equity in the industry is going to take the participation of more than just minority owners. However, their efforts in driving an equitable sector can already be felt.

Social equity programs

Social equity programs have also stepped in to push forward equity in the cannabis industry. Many jurisdictions use the state's social equity programs and cannabis regulations as a starting point for developing their own. The planned social equity program and regulations are intended to help those who live in locations where cannabis prohibition has negatively impacted them. They also want to encourage full participation from those who have been harmed the most by the drug war, as well as have a positive impact on neighborhoods by lowering barriers to entry and providing long-term, socially, and economically responsible solutions.

Though well-meaning, the state equity programs haven’t been very successful. Therefore, it is necessary to explore better approaches to build stronger policies nationally and internationally. The best intentions may not be enough; there are still many issues with these programs' implementation. 

The ground to cover

As the cannabis sector expands, the general public must be continuously reminded of how previous drug reform laws and policies have harmed underprivileged populations in the United States. The profound burden and responsibility to social equity in this industry are higher than in any other sector. 

As a matter of moral and societal principle, social equity must be a fundamental trademark of the sector. With these organizations and brands on board, there's a good chance that will happen, highlighting the wellness that cannabis is supposed to promote. We now have an obligation to act toward change as we witness the progress of social equity programs and see the flaws in the sector.

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