What Is Social Equity In Cannabis And Why Is It Important?


Social equity is the term that has its importance in the movement to legalize cannabis. We will explore social equity and why cannabis markets should have a stick rule of social equity programs. For one thing, the certain ways a few states address these programs.

Social Equity:

Social equity is any social policy related to fairness and justice. One thing that should be kept in mind that it is not similar to equality. Equality means ensuring everyone gets the same supplies, but equity means everyone is getting according to their needs. 

Importance of social equity:

Another key point, many states have made use of cannabis legal. However, People still get into trouble for using or keeping weed with them. It is said that if a person commits drug crimes, he/she banned from getting a license to do the business of cannabis. According to a 2017 survey by Marijuana Business Daily, minorities hold just 17 percent of executive positions at cannabis businesses.

Eli McVey wrote that a new hidden production comprises mostly of white males selling a drug that puts many people under arrest because of their skin colour. However, many people think this is an abuse.

Social equity program on cannabis:

The equity permit program, back in 2016, made sure the people affected by marijuana-related arrests, will get the benefits. In August 2018, Sacramento set up a cannabis opportunity and reinvestment program. It was a kind of effort to help the applicants. However, the results were the opposite. Adolph Ward, a cannabis advocate and social equity of the Oakland Cannabis Business Council’s co-chair, states.” Social equity in Sacramento is limp.”

Apart from these social equity programs, every other program of the same category proved to fail. 

Practice of social equity programs: 

A few of the ways equity programs can take to practice.

Lower barriers for entry:

Social equity means giving somethings to those who need them the most. If the entry into the cannabis industry is high, not everyone will get a place at the table. Tax money can cover the cost of applications and licensing fees, which is high. Not everyone can afford it. In the same way, the money needed to complete the application is even high. 

Reliable education:

In the field of cannabis, it is hard to know who is trustworthy. Without a doubt, the case even gets worse when it comes to the applicants of social equity. The government needs to take steps to educate the masses in this regard. Weedmaps APS government expert Reed Sullivan said some experts cost lots of money. Nevertheless, he thinks governments must find ways to help people. help people on how to navigate government bureaucracy—also, the consequences of bad policy and how that still affects business operations.

Transfer of ownership:

If social equity applicant owns a cannabis company, the situation becomes vulnerable, especially to big businesses. People with money will try to take advantage of the loopholes in the system. Government machinery needs to stay alert to the practice and should take steps to discourage dishonesty.

Due diligence must be done:

Not to mention, none of the social equity applicants are the same, so no applications are the same. Authorities should remain alert and make sure no predatory behaviors are slipping through the cracks. For example, in Illinois, state managers will pour over two documents when granting the state’s first 75 social equity licenses. The company’s ownership table lists principal operators and their percentage of ownership. The operating agreement and Precautions like these should be in every social equity program.


Not all social equity programs are successful. As a matter of fact, even started with the best of goals. To write the wrongs of the war on drugs, regulators, business owners, and cannabis consumers alike must be in the pursuit of genuinely fair practices.

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