Can cannabis redefine capitalism?

by druginc

Can cannabis redefine capitalism?

The emerging cannabis industry has the potential to put values ​​above profit.

Within a few years, the relatively underground cannabis industry has become an important economic player. As the global demand for cannabis products becomes mainstream and the cultivation, production and distribution process is tackled more and more business-like, it offers the increasingly emerging business sector a unique opportunity: to lead the way in modern capitalism with a conscious focus on creating value over profit.

Conscious capitalism

While traditional capitalism has focused on private or corporate ownership of capital assets for profit, many of today's most successful and socially responsible companies, such as Whole Foods, have set new standards for large corporations that benefit shareholders, partners and employees. while also promoting a more conscious balance between business economics and creating products that bring consumer love and loyalty.

The so-called “Conscious Capitalism” supports the idea that large companies have a positive impact on the world and the well-being of consumers. It propels business ambitions to a greater purpose by creating financial, social, cultural and environmental benefits for all stakeholders - a much more appropriate economic model for the free-spirited cannabis industry than hard-core capitalism.

Whole Foods Co-Founder John Mackey was criticized when his company was bought by Amazon; which is considered one of the real examples of contemporary capitalism in action. But Mackey, along with many popular corporate brands such as The Container Store, Starbucks, Trader Joe's, and Patagonia, continues to adhere to the idea that large companies can still provide value without turning a profit.

Recently, a number of CEOs at companies such as Apple, Pepsi and Wal-Mart issued a statement calling for an "economy that promotes everyone" and not just shareholders.

As cannabis entrepreneurs define their role in this emerging industry, they too can play a vital role in shaping a business framework that benefits people, the environment and bottom line.

In this way, cannabis does not challenge the principles of capitalism, it creates an opportunity for capitalism to evolve.

Social equality and legalization

With cannabis in 11 states in America legal for adult use and legalized medical marijuana available there in 33 states, many cannabis leaders believe there should be opportunities for everyone in this new era of legalization and robust economy.

How we create prosperity for all is perhaps our greatest challenge. It is the job of today's cannabis companies to find ways to partner with the government and government leadership in social justice efforts.

This means not just focusing on federal legalization, but helping create comprehensive legislation that addresses diversity and social responsibility, especially for minority communities hardest hit by marijuana law enforcement over the years.

The city of Los Angeles recently has one Social Equity program rolled out that application processing and support to communities most affected by the ban. And New York state legislators demand that education, business support, and social equality initiatives be included in cannabis legislation to ensure that the legalization movement encompasses everyone, and that wealth and opportunity are shared by everyone, not just by privileged individuals .

The responsibility lies with us

The future potential for the cannabis market is nothing short of astonishing. Wall Street investment bank Jeffries estimates that the global cannabis market will reach $ 2029 billion by 50, potentially reaching a peak of $ 130 billion in annual revenues. And financial services company Cowen expects the cannabis industry's gross annual sales to continue to rise to $ 2030 billion by 75.

In the state of California alone, with 40 million people or more, cannabis sales rose to $ 2018 billion in 2,5, with predictions expected to reach or exceed $ 2026 billion by 25. The opening of recreational pharmacies in January 2018 has increased the pool of legal marijuana users from 17 million to 47 million.

There is no doubt that cannabis has made its way to the capitalism table. The question now is how this new generation of cannabis companies will balance the profit cycle for investors, support job creation and social equity, and produce quality products designed to generate health and wellness for consumers.

Read more on GreenEntrepreneur (EN)

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