Vending and Connectivity (2/2): The Exploitative Relationship Between Private Companies and Prisons
State departments of corrections and the Federal Bureau of Prisons spend upwards of $100 billion to meet the needs of an estimated 6,000,000 incarcerated and justice-involved individuals throughout the country. When public sector entities are unable to fulfill these requirements, private companies step in to provide essential goods and services. However, these companies often operate without adequate oversight, allowing them to exploit their position by offering subpar products and services. Companies take advantage of monopoly contracts and the "captive market" of incarcerated individuals, compromising on quality, worker safety, and charging excessive prices. This network of thousands of privately-owned companies that profit from the U.S. detention system is known as the Prison Industrial Complex.
Below are a few examples of how private companies have exploited these contracts:
· Aramark, a food service company in prisons, has faced criticism for providing spoiled or contaminated food with inadequate portion sizes and nutritional value. These practices violate human rights and compromise the well-being of incarcerated individuals. Aramark has also been sued for neglecting worker safety and training, prioritizing profits over employee welfare.
· GTL and Securus Technologies, telecommunications companies, have come under fire for charging exorbitant rates for phone calls and video visits, hindering communication between incarcerated individuals and their families. This places a financial burden on families and undermines rehabilitation efforts.
The extent of exploitation by private companies in prisons is vast, and limited information is available on its scale. FreeCap aims to bring transparency and oversight to these contracts and operations by shedding light on these vending relationships. Our robust data collection tracks vendor payment transactions between private companies and corrections departments (or their equivalents) across 33 states, representing over 70% of the US’s incarcerated population. Our goal is to make it easy for investors to divest from the network of companies that sustain injustice, and instead, invest in companies with strong ethical business practices.
Taking action
· Contact us if you’re interested in learning more about our data and how we can help you invest with your values
· Talk to your financial advisor about how to screen out companies with a negative criminal justice footprint from your investment portfolio. Feel free to reach out if you don’t know where to start, we’re happy to help.
As responsible investors, we hold the power to drive change and contribute to a more just and humane society that respects the dignity and rights of all individuals, including those in the prison system.
Written by Jordan Brown and Steph Shih
Jordan Brown is the Data Science Lead at FreeCap Financial and Founder of Alluvium Insights. He holds a B.A. in Political Science from the University of Notre Dame and a M.A in Education Policy from George Washington University. Throughout his career, Jordan has managed and conducted rigorous research analyses and developed visualizations/dashboards for a wide range of clients ranging from federal government departments to small nonprofits. He is a native of Laplace, Louisiana, and is currently based out of Washington D.C.
Steph Shih is FreeCap’s Business Development Lead. For the last decade, she has worked across public and private sectors building programs, partnerships, and impactful communications to create a more just and sustainable society. She is passionate about directing the flow of capital to create equitable communities and lessen the racial wealth gap. She graduated from The University of Texas at Austin with dual degrees in Business Honors with a Marketing concentration and Plan II (Liberal Arts) Honors.