The Prison Industrial Complex

T H E P R I S O N I N D U S T R I A L C O M P L E X

A significant portion of prison-work programs exploit incarcerated labor by offering little to no pay and poor working conditions.

Of those deficient wages, incarcerated workers keep only a small portion of their hourly rate.

According to a report published by North Star Asset Management, those outside of the Prison Industry Enhancement Certification Program (an initiative that mandates payment of the minimum wage) typically earn just $0.02 to $2.00 per hour.

Additionally, thousands of companies supply products and services to federal, state, and private detention centers across the U.S. Too often, these companies exploit monopoly contracts and the "captive market" of incarcerated individuals by compromising on product quality, worker safety, and charging excessive prices.

Less than half of the companies that we rated explicitly ban prison labor in their supply chain.

Investors should be concerned about the ethical and reputational risks that come with fueling the prison industrial complex.