Bill Overview
Title: Securities and Exchange Atonement Act of 2022
Description: This bill addresses the racial equity of publicly traded companies. Specifically, the bill requires certain publicly traded companies to regularly audit the company's ties to slavery and the company's policies and practices on civil rights, equity, diversity, and inclusion. The bill also establishes the Office of Reparations Programs within the Department of the Treasury to provide grants to further racial equity, including for startup capital and funded savings programs for Black communities.
Sponsors: Rep. Green, Al [D-TX-9]
Target Audience
Population: People involved with or affected by publicly traded companies, and Black communities eligible for reparations programs
Estimated Size: 80000000
- Publicly traded companies will be required to audit their practices and history regarding slavery and civil rights which could lead to changes in corporate policies.
- Employees of these companies, especially in roles related to compliance, diversity, and human resources, could be directly affected as new processes and initiatives are developed.
- Companies may allocate resources to improve civil rights, diversity, and inclusion, impacting internal corporate culture and practices.
- The implementation of the Office of Reparations Programs will affect Black communities by providing grants aimed at startup capital and funded savings programs.
- Entrepreneurs and individuals in Black communities seeking startup funds or financial support will be directly impacted.
- The legislation focuses primarily on U.S. publicly traded companies, meaning the main impact is within the United States, however, global companies with U.S. presence could also be indirectly impacted.
Reasoning
- The population mainly comprises employees of publicly traded companies and members of Black communities who might receive grants through the Office of Reparations Programs.
- Due to funding and resource allocation limits, not all applicants for startup capital will receive grants at once. The policy's impact may be spread over several years as resources are distributed gradually.
- The direct impact on employees of companies comes mostly from changes in corporate policies towards diversity and inclusion, which could improve workplace culture.
- Black entrepreneurs and startups in communities eligible for the grants will see more noticeable immediate impacts from funded programs, which could lead to improved financial wellbeing and community development.
- Not every person in the target group will see an immediate impact; some improvements may be indirect or take longer to manifest.
Simulated Interviews
Marketing Manager (Atlanta, GA)
Age: 36 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I believe this policy could positively impact my company by making it more inclusive and demonstrating a commitment to racial equity.
- As someone driving diversity initiatives, I am excited about the potential for more resources to support these efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Corporate Compliance Officer (Chicago, IL)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- The policy will likely increase my workload, but it aligns well with my personal values about social responsibility.
- I am interested in how companies will respond to these new requirements and the investment in diversity,
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Tech Startup Founder (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This policy is a game-changer for me. Access to startup capital means we can hire more staff and accelerate our growth.
- I hope this sets a precedent for more support for Black entrepreneurs beyond just initial funding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 9 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
HR Director (San Francisco, CA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- Any legislation that promotes diversity and equity is beneficial not only for society but also for corporate productivity.
- I anticipate challenges in implementing and tracking these audits, but they are necessary steps forward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Recent College Graduate (Detroit, MI)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- Knowing companies are required to commit to diversity makes me hopeful for more fair opportunities as I enter the workforce.
- I’m optimistic these changes will lead to meaningful careers for many in my community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Investor (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This policy will help identify which companies are genuine about their diversity and equity commitments, influencing where I place my investments.
- I expect some companies will perform better once they align with these important societal goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Civil Rights Advocate (Boston, MA)
Age: 31 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Policies like these are essential stepping stones toward achieving racial equity not just in business but across society.
- I'm eager to see how enforcement will be handled and what measurable outcomes will emerge.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Retired (Cleveland, OH)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I think the impact will be slow as companies gradually adapt, but the direction is positive.
- I hope these efforts lead to lasting cultural changes within organizations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Small Business Owner (Dallas, TX)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy could significantly grow my business as more companies seek external help with compliance and diversity training.
- I'm optimistic about the broader societal changes these audits might lead to.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
CEO of a Publicly Traded Company (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The bill presents an opportunity to further align our business values with societal expectations regarding racial equity.
- There will be challenges in reconciling past company history with current efforts, but it is a needed process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $250000000 (Low: $200000000, High: $300000000)
Year 3: $300000000 (Low: $250000000, High: $350000000)
Year 5: $400000000 (Low: $350000000, High: $450000000)
Year 10: $600000000 (Low: $500000000, High: $700000000)
Year 100: $1000000000 (Low: $900000000, High: $1100000000)
Key Considerations
- Administrative overhead for companies to comply with audit requirements could be significant at program inception.
- Potential legal challenges from companies or stakeholders might arise regarding the audit requirements and scope.
- The effectiveness of the Office of Reparations Programs in distributing grants and achieving intended equity goals needs clear benchmarks.