Inequality in the cannabis industry and the drive for social justice

Inequality exists in the cannabis industry, and some companies have tried to address it by pushing for social justice.

Currently, representation in the cannabis industry is extremely uneven. A poll found that American cannabis companies were disproportionately white. According to the survey, about 87% of business owners are white, and other minorities accounted for less than 5% each.

This disparity reflects years of disproportionate treatment prior to the mass legalization of cannabis. In the 1970s, Richard Nixon launched the United States’ “War on Drugs,” a long-term plan to criminalize possession of marijuana. The campaign had a particularly profound impact on racial minorities. Law enforcement targeted both African and Hispanic Americans in their crackdown on marijuana, leading to arrests and a bloated prison system.

Canada was not much different in its approach. Before the country legalized marijuana in 2018, criminal laws surrounding cannabis affected Black and Indigenous communities more than other groups. For example, studies found that someone of Indigenous descent faced nine times the odds of being arrested for possession of marijuana than white Canadians.

Even after legalization in much of North America, racial inequality caused by the War on Drugs still persists. Criminal records remain an enduring sign of an individual’s long-term economic outcomes, making it difficult for affected individuals to rehabilitate themselves. In addition, breed profiling has continued. In the United States, African Americans are 3.6 times more likely to be arrested for possession of marijuana than their white counterparts.

Given the long and troubled history of marginalized racial groups and their relationship to marijuana and law enforcement, it’s rather precarious that the legal cannabis market is predominantly white.

How the industry has pushed for social justice

However, the lack of justice in the cannabis industry has not gone unheard. Recognizing this injustice, many industry leaders have worked to provide opportunities for ethnic minorities to start their own businesses. For example, Hoban Law Group, a leading law firm for the cannabis industry, has provided and promoted social justice programs. From job opportunities to training on unconscious bias, they have done everything to achieve greater minority representation.

But sometimes the industry’s efforts just aren’t enough. Government support can strengthen our collective racial justice efforts. For example, Oakland introduced an equity permit program back in 2017 after California decided to legalize weed. The program helped communities and individuals hardest hit by the drug war by giving them priority access to business permits.