How A Business Accelerator Is Literally Cementing Equity into Cincinnati’s Economy

Benefit corporations provide a way for businesses to make profit without having to slash wages or resort to environmentally destructive practices. Ben & Jerry's, for instance, is one of the world's most popular ice cream brands with an annual sales revenue of $132 million. Its lowest-paid worker makes $16.13 an hour, which is 46 percent above the living wage in home state Vermont, and the company offsets more than 50 percent of its greenhouse gas emissions. More than 40 percent of the board and management are from underrepresented populations, such as women, people of color, lower-income individuals, and people with disabilities.

In a time when U.S. corporate profits are soaring but wages remain stagnant, Ben & Jerry's and hundreds of other companies, including Cooperative Home Care Associates profiled below, are choosing an alternative business model – benefit corporations – driven not just by profits but also by fair working conditions, diverse leadership, and environmentally sustainable practice.

One of the fundamental challenges to growing more "triple bottom line" businesses is the legal requirement to maximize profits that applies to corporations. Anything that takes away from profits, such as higher wages or more sustainable environmental practices, leaves the corporation vulnerable to being sued by its shareholders. This limitation hinders companies from advancing any values beyond profit making.

In response to this limitation, a movement was started to pass legislation allowing for a new type of corporate entity called the benefit corporation. The benefit corporation provides legal protection for businesses that choose to treat their workers well, protect the environment, and invest in their communities, even if it means their annual profits are not as high. As of 2013, 19 states plus the District of Columbia passed benefit corporation legislation, including Delaware, which is home to 50 percent of all publicly traded companies and 64 percent of Fortune 500 companies.

In 2012, Ben & Jerry's took a step beyond being a benefit corporation and became a Certified B Corporation, as conferred by a nonprofit organization called B Lab. There are currently more than 1,000 registered B Corps. A Certified B Corp voluntarily meets higher standards of governance, workforce treatment, environmental impact, and community involvement. Companies must score at least 80 points on a scale of 200 to be eligible for certification.

Certified B Corps are part of a community of socially responsible companies and span a large spectrum of goods and services. In 2012, Cooperative Home Care Associates (CHCA) in the Bronx, New York, became the first home care company to become a Certified B Corp. Their overall B Score, at 154, is nearly twice the median score.

One of the reasons CHCA scores so high in the B Impact Assessment is because it is a worker-owned cooperative with the vast majority of the workers and worker-owners being from the Bronx. In an industry where good-paying jobs are hard to come by, CHCA deliberately chose a different business model, one that prioritizes workers over profits, and has flourished for nearly 30 years. The company has grown from 12 people to now over 2,000 employees, 70 percent of whom are worker-owners.

"When we started, a lot of for-profit home-care companies were established and were seen as a way of making a lot of money in a short time," said Michael Elsas, president of CHCA. "You didn't have to pay workers that much, you didn't have to train them that well, and you could move in and make a killing. And, in that environment we wanted to establish something a little different, more socially responsible."

Treating the workers well was not just a social mission, but it made good business sense. Elsas said, "Many of the people we were seeing were women, particularly women of color. The thought was if we train people longer and really spend time with them, if we prepare them for an entry-level position and get them ready to work and remove those barriers to work, and, if we provided a lot of support for those workers both before and after they were trained by us, we could create quality, full-time jobs. And then as a result of that quality job, we would be providing quality care that we could, in fact, provide better services."

CHCA has been a co-op since the company started in 1985. Going from a co-op model to also certifying as a B Corp was an easy decision and made a lot of business sense, Elsas said. "Distinguishing ourselves as a B Corp would be helpful in marketing to be able to say we are the only B-Corp certified home care company. We thought that would be helpful for those entities that want to do business with a B Corp. Quite honestly, it was a natural for us. There was very little that we had to do to get certified because we were already a worker-owned company, we already had everything in place."

Elsas said that CHCA is successful not because it is a co-op but because of the best practices they employ. Currently, 90 cents of every dollar that comes into the company goes to the worker. While paying workers less would result in higher profits and better dividends, Elsas said higher dividends is not what has made the company successful for 30 years. Instead, what makes CHCA successful is "how we train, how we supervise people, how we respect people, how we let people participate in what we do."

Companies like CHCA and Ben & Jerry's show that businesses can make a profit and embrace socially responsible practices. Higher wages and better work environments help working families reach economic security. Consumers can support B Corps and environmentally and socially conscious businesses by buying their products and services. A full list of B Corps can be found here.

“This Is a Nationwide Epidemic”: A Frank but Hopeful Conversation with Evicted Author Matthew Desmond

In Milwaukee, one in eight renters — disproportionately people of color — are evicted every two years, and this alarming trend is playing out across the country. In his eye-opening new book, Evicted: Poverty and Profit in the American City, Matthew Desmond documents the devastating consequences for families, communities, and the nation. He argues that housing security must be part of a policy agenda to eliminate poverty and build an economy that works for all.

Desmond, a sociologist and urban ethnographer, spoke with Kalima Rose, senior director of the PolicyLink Center for Infrastructure Equity and co-author of Healthy Communities of Opportunity: An Equity Blueprint to Address America’s Housing Challenges. This report, released today by PolicyLink and The Kresge Foundation, explains how health, housing, and economic security policies must be aligned to achieve equitable housing outcomes.

Q: How widespread is eviction and who is most affected?

A: In Milwaukee, if you look at only formal court-ordered evictions, you learn that about 16,000 people are evicted every year in that city. That’s about 40 people every day. We’ve crunched court-ordered eviction numbers in other cities, and Milwaukee is no outlier. New York processes about 60 marshal evictions every single day.

These numbers are startling and very troubling, but these are just court-ordered evictions. If you add landlord foreclosures and building condemnations, then you learn that every two years about one in eight renters in the city of Milwaukee is evicted. Mothers in low-income African American communities, in particular, are evicted at incredibly high rates. Among Milwaukee renters, about one in five Black women report being evicted versus one in 15 White women. This is a nationwide epidemic.

Q: Why do evictions hit families with children especially hard?

A: Children often are the reason families get evicted. When I started this work, I thought that having kids would shield you from eviction. But families living with kids have three times the odds of receiving an eviction judgment in eviction court, even controlling for arrears. What you’re seeing in that discrepancy is the landlord’s discretion. Some landlords are choosing not to work with families with children — because children can be hard on the landlord’s bottom line. Then kids often prolong the time you're homeless after your eviction because family discrimination is still real. I saw families get turned away quite a bit for having kids.

If we want to give children a fighting chance to realize their full potential, we have to provide them stable, affordable housing. You don’t just lose your home when you're evicted. You often lose your school and your community and your possessions. This massive instability has broad-reaching consequences.

Q:  You write that eviction impacts African American women in the same way that criminal conviction impacts African American men. Explain the parallels.

A: We know that when you get out of prison and you have a criminal record, it can really affect your life. It can affect your success in the job market and your access to certain forms of public aid. An eviction record works the same way. It can bar you from receiving public housing, which means we’re still systematically denying housing help to people that most need it. It can bar you from accessing a decent place to live in a safe neighborhood, because many landlords turn away families with a recent eviction. There’s a kind of gender discrepancy that mirrors incarceration.

There’s also a policy story where they move in lock step. We have had massive investment in public housing over the last three decades, but it’s been in the form of prisons. Some governors reallocated money for public housing to build more prisons. So there are more connections than one would think that link mass incarceration and the lack of affordable housing. 

Q: Your book draws distinct pictures of neighborhoods — from trailer parks to White, Black, or Latino enclaves in Milwaukee. What are the forces driving segregation in the city?

A:  The White folks I spent time with that were evicted from a trailer park didn’t even consider moving to the North Side of the city, the predominantly African American inner city. But even though they amputated a large section of the city from their possibilities, they still had an easier time finding housing than the African American folks that I spent time with. It’s a story about the salience of discrimination. It’s a story about how race still matters, even at the very bottom of the market.

Q. What does this mean for building strong communities of opportunity?

A: Unless we provide families a shot at investing in a community, it’s going to be really hard for them to make a difference on their own streets and their own blocks. There are some neighborhoods in Milwaukee that have a 10 percent or 15 percent eviction rate. Those conditions turn neighbors into strangers. They disrupt the social fabric of neighborhoods. We know from previous research that if neighbors get together and work hard on local issues they can make a huge difference. Programs to stabilize housing would stabilize communities, too.

Q: What policy action would you like to see at the federal level?

A: There needs to be more attention paid to the role that housing is playing in poverty. When most politicians on either side of the aisle are asked about what to do about inequality or poverty in the United States, they usually start with a focus on jobs. That’s only part of the solution though. I don’t think we can fix poverty if we don’t fix housing.

Eviction is not just a condition of poverty, it’s a cause of it. It’s linked to job loss, mental health issues, school instability, loss of possessions, homelessness, and moving into worse neighborhoods. It’s fundamentally recasting people’s lives in a more difficult way. But we also have to ask ourselves a question about who are we as a nation that allows this level of inequality, this level of blunting of human capacity, and this degree of social suffering. I don’t think there’s any American value that justifies this situation.

Visit Just Shelter, an organization started by Desmond, to learn about the work of community organizations fighting to prevent eviction, preserve affordable housing, and prevent family homelessness.

Healthy Food Access: A View of the Landscape in Minnesota and Lessons Learned from Healthy Food Financing Initiatives - Summary

Overview

This study explored healthy food financing initiatives (HFFIs)—one possible solution for expanding healthy food access in underserved communities. HFFIs are public-private funds that offer flexible capital in the form of loans and grants to developers and operators of food retail businesses. Interviews with managers of existing funds throughout the United States reveal that: 
 
  • Seed money, including funds for planning and administration, is important for a successful launch. 
  • To date, the majority of HFFI dollars have gone to support already established business owners. 
  • Many healthy food projects are not equipped to take on debt. Grants or forgivable loans are needed in order to produce additional healthy food outlets, especially in areas that, from a business standpoint, would be considered unprofitable. 
  • Flexible sources of capital are critical for maximum deployment of funds, and project requirements should not be overly restrictive. 
  • HFFI-funded projects have helped to create jobs, expand healthy food retail, and eliminate food deserts. In some neighborhoods, these projects also spurred additional community revitalization. (4) 
  • There are several cases of HFFI loan recipients partnering with other organizations, including community clinics, medical schools, and fitness facilities, to improve resident health. According to managers of HFFI funds, retail outlets need to be rooted in the community in order to be successful. To that end, business owners can play an important role in supporting population health improvement goals. 
 

Healthy Food Access: A View of the Landscape in Minnesota and Lessons Learned from Healthy Food Financing Initiatives

Overview

The Federal Reserve Bank of Minneapolis and Wilder Research conducted a mixed-methods study to provide information to those interested in improving Minnesota's food retail environment.

Profile: Portland Mercado

Overview

The Latino community in Portland, Oregon, has grown rapidly in the last 20 years, from 3.3 percent of Portlanders to 11 percent, and by 2040 it is estimated that 23 percent of the city’s residents will be Latino. This growth, however, has not been accompanied by increases in opportunity.

Recognizing the important link between access to healthy food, economic opportunity, community building, and culture, Hacienda Community Development Center (CDC) secured a federal Healthy Food Financing Initiative (HFFI) grant in 2012 to develop Portland Mercado, an innovative project which includes a Latino cultural space and public market, bringing fresh food and good jobs to the community.

CED and CED-HFFI Funding Opportunity Announcements

Overview

This session presented information about the CED and CED-HFFI grant competition, based on the CED and CED-HFFI funding opportunity announcements (FOAs). It outlined the programs’ purposes and strategies, provided tips and tools for submitting an application for CED or CED-HFFI funding, and identified key application criteria and requirements.

Community Economic Development (CED) Program Overview Webinar

Overview

This session provided prospective CED applicants with an overview of the CED program, including the program’s mission and objectives, organizations eligible to apply, the program’s target population, and examples of successful CED projects. The webinar also provided a summary of funding requirements and estimated award amounts. 

A Hearing for Chief Judge Merrick B. Garland

Today, President Barack Obama nominated Merrick B. Garland to be the 113th justice of the United States Supreme Court.  By all accounts, Mr. Garland is an outstanding candidate.  He had a stellar career as a lawyer, both in the public and private sectors, and serves as the Chief Judge of the United States Court of Appeals for the District of Columbia Circuit, perhaps the most prestigious and celebrated federal appeals court in the country.  And in 1997, he received bipartisan support for his appointment to the DC Circuit.

Yet, if we are to believe what we have seen and heard starting just 15 minutes after Justice Antonin Scalia’s untimely death was announced, Mr. Garland will not be confirmed.  Indeed, he will not even get a hearing.  That a candidate as accomplished as Mr. Garland will not be allowed to make a case to the American public that he is the right person for the job and that he will protect the rights and liberty of all people living in this country, is an undeniably glaring signal of how dispiritingly broken and dysfunctional our politics have become.

Of course, there is more at stake with this nomination than the functioning of our political system.  Critically important cases, whose resolution could undermine efforts to advance equity for low-income communities and community of color, are before the Court.  For example, in Fisher v. University of Texas at Austin, the Court will revisit the constitutionality of affirmative action.  In Evenwel v. Abbott, the Court’s ruling could undermine the political power of minority groups, particularly Latinos.  And at issue in Friedrichs v. California Teachers Association, is the financial sustainability of unions.  Mr. Garland’s appointment, assuming he is confirmed in a timely manner, could lead to rulings that promote equity in all these cases. 

Article II, Section 2 of the United States Constitution states, “[The President] shall nominate, and by and with the advice and consent of the Senate, shall appoint ambassadors, other public ministers and consuls, and judges of the Supreme Court . . . ."

President Obama has done his job.  It is time for Republicans in the Senate to do theirs.

WEBINAR-Grocery Store and Retailer Scorecard

Overview

The “Grocery Store and Retailer Scorecard” is modeled on a successful and similar self-assessment scorecard developed for school lunchrooms by the Cornell University Food and Brand Lab and adopted by the United States Department of Agriculture. This webinar presents the “Grocery Store and Retailer Scorecard” tool and features speakers that highlight the behavioral economics that informed the tool’s development and the research conducted with grocers on feasibility and retailer adoption.

Transportation, Jobs, and Civil Rights for the 21st Century: An Interview with Faith-Based Leader Ana Garcia-Ashley

For Ana Garcia-Ashley, living out the values of her Catholic faith is about more than helping one's neighbor, or caring for those in need — it’s about dismantling systems of oppression and racism that have left so many Americans cut off from opportunity. As executive director of Gamaliel, a national network for faith-based community organizing, Garcia-Ashley has helped engage congregations across the country around a range of political issues — from predatory lending to immigration reform to congressional spending. The first woman of color to lead a national community organizing network, she has brought a relentless activist spirit to the faith-based work of her organization.

Advocating for a more equitable transportation system, both in terms of access to quality transportation and access to jobs in the transportation industry, is a core part of Gamaliel’s work.  Leveraging 44 Gamaliel affiliates in 17 states and the grassroots Transportation Equity Network that includes over 300 community organizations, the organization advocates for transportation as not only a civil right, but a crucial driver of upward mobility — a link bolstered by a recent Harvard study that identified lower commute times as the single strongest predictor of escaping poverty for low-income families. This connection between transit and economic opportunity can also be seen in Gamaliel’s recent work to promote the Department of Transportation’s local and targeted hiring pilot — a one-year initiative launched last March that allows city and state governments to prioritize the employment of local, low-income workers for contracts to build roads, bridges, and transit facilities.

Garcia-Ashley spoke with America’s Tomorrow on the importance of transportation access — a sector of Gamaliel’s work that has taken center stage following the approval of the local and targeted hiring pilot. 

Q: Why is local and targeted hiring important for building opportunity for low-income communities and communities of color?

A: You have these multibillion dollar highway projects that could provide quality jobs with benefits and career pathways into construction jobs. And these projects are often being built in neighborhoods with high unemployment, often that are communities of color. It’s a no-brainer that these projects should be used to have positive impacts on the communities where they’re being built by ensuring that a portion of the construction jobs go to local workers in that community. And we already see that they have been successful when implemented on a local basis. But for decades, there was essentially a moratorium on local hire for federal projects, because unions, developers, and others in construction felt that there wouldn’t be ready labor and it wouldn’t be cost-effective to hire locally. So we were very emotional and excited when, after years of advocating for local hire, Department of Transportation Secretary Anthony Foxx announced the pilot of local hire in March. Of course, now it’s up to advocacy groups like PolicyLink and Gamaliel to go into the communities where we have a footprint and ensure that they put this pilot to use, that we document best practices, and show how all the fears about efficiency and cost-effectiveness aren’t actually a problem.

Q: What has been the most crucial element within the organizing that Gamaliel does to promote local hiring?

A: We need community members to be able to talk about these policies and their impact – not just policy wonks. We need to have the housewife, the preacher, the young person being able to talk about local hire and regulations and transportation access — just like they talk about Beyoncé! Young people always seem to know what she’s doing, but not what the Department of Labor is doing — but the DOL affects their lives a lot more. It’s about building awareness and civic-mindedness in the young generation, building these local champions who can talk about what it means to them, what it means to their communities.

Q: Can you give an example of where local hiring as a policy in transportation projects has been a success?

A: In the building of the I-64 bridge in Missouri, advocates were able to get 1 percent of the budget to go into training and hiring single moms and people of color. So they spent $2 million to not only hire locally, but to train people to take on these jobs — and the project came in under budget. We need more opportunities to implement projects like this, and we need to collect data about them to back up their success and make the case for these policies being applied more widely. Then, hopefully, we can institutionalize local hire into all infrastructure projects and maybe expand it to other federally funded projects. We should be using federal money — tax payer funds — to empower all Americans, not hold up a system that oppresses them, that builds highways that divide low-income communities and displace homes, without giving anything back to the people who live there.

Q: A crucial part of Gamaliel’s work is advocating for access to public transportation as a civil rights issue for low-income people and people of color. Why do you view transit access as a civil right?

A: During the Civil Rights movement, advocates were looking at the immediate and urgent ways of gaining basic rights as citizens, but transportation was always a piece of that larger picture. Rosa Parks did not just sit on the bus because she wanted to sit anywhere she wanted on the bus — it was a symbol of the dignity of people of color, the right to have access to the bus, to have a job to go to on that bus. Victories like the Voting Rights Act and the Civil Rights Act provided us a platform, and a responsibility to make sure that people can move to opportunity — because the structures of our society were not designed to serve women, people of color, or the poor. Instead, these structures have created and preserved hyper poverty areas where people literally cannot leave their neighborhoods because of lack of transit.

But when we hear transportation, the dominant narrative is always the highways, the two-car garage. This is reflected in a transportation budget that has been so focused on the creation of highways and connectors that have historically destroyed and divided communities — especially communities of color. Countless highways have cut through Black communities, displacing residents and destroying Black businesses. We need to move away from just thinking about highways and cars and start thinking about a transportation system where everyone, no matter how poor or elderly or young you are — you can get where you need to go.  Because equal opportunity includes being able to get to where you need to go without having to spend $10,000 to own a car. That’s why we feel that transportation is the civil rights issue of the 21st century. It’s essential we expand our conceptions of civil rights to include it.

Q: Gamaliel is a faith-based advocacy group — how do you see the issues of the church intersecting with transportation and civil rights?

A: It’s not a connection that everyone makes right away. I still get push back from people — “Why is a faith-based network so obsessed with the Department of Transportation and how highway dollars are spent, and what does that have to do with living out your faith?” But we see transportation and infrastructure as determining the quality of life people can have, and we see public transit as protecting the planet because, for every bus, you're taking hundreds of cars off the road. People want to know where in the scripture it talks about public transit, but the scripture talks about caring for your neighbors, being a steward of the earth, and living in a community that respects the dignity of people — and we see quality, affordable transportation access as central to living up to these values.

Pages