Report

Reducing Economic Inequality through Democratic Worker-Ownership

Shannon Rieger

Amongst developed nations, the U.S. is a leader in unequal income distribution. But according to a recent Century Foundation report on the role of worker-ownership models, this is a trend that can be changed. The author examines how a cohesive national regulatory framework, national tax incentives, a U.S. employee ownership bank, and increased support for employee-ownership technical assistance centers can bolster U.S. worker-buyout policy. In aligning regulatory, technical, and financial support for worker-cooperatives, the United States can bring scale to this key economic equalizer. 

Can Hospitals Heal America's Communities?

Ted Howard and Tyler Norris

Healthcare’s role in creating healthy communities through increasing access to quality care, research, and grantmaking is being complemented by a higher impact approach; hospitals and integrated health systems are increasingly stepping outside of their walls to address the social, economic, and environmental conditions that contribute to poor health outcomes, shortened lives, and higher costs in the first place.  

Healthcare Small Business Gap Analysis

Jessica Bonanno, Steve Dubb, and Ted Howard

Our newest report, Healthcare Small Business Gap Analysis, prepared in partnership with New Orleans based DMM & Associates on behalf of the New Orleans Business Alliance (NOLABA), outlines procurement practices and supply chain needs of New Orleans healthcare institutions and the capacity local business to fulfill those needs. The report provides recommendations on how to leverage New Orleans’ hospitals’ $1.5 billion in procurement spending to promote greater local procurement and economic inclusion in a city where only 48 percent of African American adult males are in the formal labor force. This report is based on interviews with nearly  50 representatives from area hospitals, additional anchor buyers, technical assistance organizations, small businesses, and other public stakeholders.

The Anchor Dashboard: Aligning Institutional Practice to Meet Low-Income Community Needs

Steve Dubb, Sarah McKinley and Ted Howard

This study seeks to introduce a framework that can assist anchor institutions in understanding their impact on the community and, in particular, their impact on the welfare of low-income children and families in those communities.

Download the report and learn more about our work to help anchors measure their impact on community wealth.

 

The Anchor Mission: Leveraging the Power of Anchor Institutions to Build Community Wealth

Farzana Serang, J. Phillip Thompson and Ted Howard

This report from The Democracy Collaborative and the Department of Urban Studies and Planning at MIT focuses on the path-breaking Vision 2010 Program implemented in Cleveland and Northeast Ohio by University Hospitals System. Over a five year period, the initiative targeted more than $1 billion of procurement locally to create jobs, empower minority- and female-owned businesses, and create a “new normal” for responsible, community-focused business practices in the region.

Bridging the Two Americas: Employment & Economic Opportunity in Newark & Beyond

Demelza Baer and Ryan P. Haygood

While Newark, New Jersey is home to several major Fortune 500 companies, local residents are largely excluded from this economic growth and hold only 18 percent of all jobs in the city. This new report, published by the New Jersey Institute for Social Justice, explores the origins of this economic divide, which predominantly affects communities of color, noting a history of discrimination and an absence of pathways to middle-skill jobs. The report calls on the City to implement local hiring provisions for city contracts and calls on anchor institutions to develop local hiring and procurement strategies.

Reclaiming Public Services

Satoko Kishimoto, Olivier Petitjean and Lavinia Steinfor
The Transnational Institute

This new report from the Transnational Institute (TNI) explores how localities across the globe are fighting privatization through the “re-municipalization” of goods and services. Drawing on 835 examples in 45 countries, the report finds that public ownership offers greater efficiency, affordability, and democratic control in sectors ranging from healthcare to energy. The report synthesizes trends in public ownership and includes detailed infographics on the findings. 

 

Economically Targeted Investments by U.S. Pension Funds

Tom Woelfel
Pacific Community Ventures

Tom Woelfel writes for Pacific Community Ventures on Ecomically Targeted Investments.

U.S.-based public and private pension funds have been making Economically Targeted Investments (ETIs)—investments that generate societal benefits in addition to the investment return—since the 1960s. Over this time, pension funds have sought risk-adjusted returns for their plan’s participants and beneficiaries through investments in worker-friendly affordable housing, in-state businesses, infrastructure, and other projects. The practice of pension funds making ETIs has continued amidst challenges, such as the politicization of some ETIs in the 1980s and 1990s and economic downturns that significantly impacted the U.S. economy. More recently, new types of investments such as those that incorporate environmental social governance (ESG) factors and impact investments have emerged for consideration by pension funds, and the United Nations 17 Sustainable Development Goals are being utilized by some as a guide to investment. 

Read more about it at Pacific Community Ventures... 

6 steps to build community wealth

Coop party
Coop Party

Based off the work of the Democracy Collaborative the Coop Party in England releases 6 steps to build community wealth 

Using what we already have to generate local economic growth co-operatively

You can read here or below...

Employee Ownership & Economic Well-Being

National Center For Employee Ownership

This report from the National Center for Employee Ownership synthesizes research on the impact of employee ownership on economic outcomes for young workers, ages 28-34. The authors find that compared to non-employee owners, these workers have higher household net wealth, higher median incomes, increased job stability, and greater access to benefits such as childcare, retirement plans, and tuition reimbursement.

Impact investing and employee ownership: Making employee-owned enterprises part of the income inequality solution

Mary Ann Beyster

With income inequality in the United States at record high levels, employee ownership is increasingly being lauded as a potential solution to spreading wealth more broadly. Most recently, research from the National Center for Employee Ownership released in May shows that employee owners have a household net worth that is 92 percent higher than non-employee owners. They also make 33 percent higher wages, and are far less likely to be laid off. 

But employee ownership requires new investment in order to get to scale. A new report by Mary Ann Beyster, president and trustee of the Foundation for Enterprise Development (FED), published by the Fifty by Fifty initiative of The Democracy Collaborative, examines the investing landscape for potential opportunities in employee ownership. The report, Impact Investing and Employee Ownership, reports on the results from six months of research showing that the opportunities for impact investors to support employee ownership are limited, but that an investing infrastructure is beginning to emerge across asset classes.