Tag: inc.

I read with interest a recent report in the News & Observer by Mr. Doran about the Elon University marijuana legalization poll. Legalization of cannabis and cannabinoid products should be a priority for the North Carolina General Assembly among its manifold fiscal, social and justice reform legislative efforts.

Prosecution of marijuana and related offenses has disproportionately affected minorities and the poor. Serious convictions for non-violent offenses that nullify a defendant’s civil rights and effectively disqualify him or her from professional licenses and job opportunities offer no benefit to our community. Statutory oddities such as the possession of rolling paper which carries a more severe penalty than that of possession of marijuana itself are evidence of stupid law making at best, and discrimination at worst. In what system would a prosecutor allow a guilty plea to a weapon possession charge and dismiss the accompanying homicide? Ridiculous. Only sixteen states still enforce a strict prohibition of cannabis, North Carolina among them. A few of these are currently considering decriminalization and/or legalization. From a criminal justice perspective, we are dead wrong on our failure to open a serious legislative debate on cannabis.

Legal use of cannabis for medical purposes should raise no argument whatsoever. Other than the prejudicial effects of inhaling anything that produces smoke, there is no medical evidence that cannabis harms the human body any more than the use or abuse of any substance. In fact, there is a body of evidence that the positive effects of prescribed cannabis to reduce pain and increase appetite far outweigh the negatives, allowing patients to enjoy an improved quality of life without the risk of the dangerous spiral of opiate addiction. The prohibition of cannabis use by individuals with terminal illnesses is absolutely indefensible.

From a social impact perspective, opponents of marijuana legalization often recycle the tired argument that it is a “gateway drug”, that by allowing adult use somehow cannabis consumers will turn into crack, heroin or methamphetamine addicts. Again, evidence does not support that argument. Like any reasonable adult, I am not enthusiastic about my airline pilot, brain surgeon or my children’s school bus driver smoking marijuana then immediately engaging in their occupations but we don’t allow them to do so with alcohol or prescription drugs either. There is an equivalency here. Likewise, justifications of prohibition based on the supposition that marijuana users will engage in actions under the influence that they otherwise would not, or somehow evolve into dastardly delinquents committing crimes to support their habit fall flat.

Fiscally, legalization is a responsible action. I can speak with some authority. Since legalization of cannabis in California under Proposition 215 over a decade ago to date, I have affixed my signature to approximately eight thousand surety bonds required by over a dozen state regulators that guarantee the conduct of those cannabis licensees. Those licensees have become significant revenue generators. In 2019, cannabis sales generated a tax revenue to the State of California in the amount of $629.3 million. Over the lifetime of the program the revenue number is $1.03 billion. Washington as a comparison by population similar to that of North Carolina enjoyed a 2019 tax collection of $395.5 million, $1.33 billion over the life of its cannabis program. The revenue is of course but part of the fiscal picture, as the end of simple possession and paraphernalia prosecutions have saved criminal justice systems countless millions of dollars.

I don’t use cannabis. I’m just not interested but neither am I interested in smoking cigarettes. My choice doesn’t mean that responsible adults should not make their own informed decisions about cannabis use. Legalize it for adults, tax it and penalize irresponsible and illegal cultivation and distribution. Not doing so after consideration of the successful government-regulated cannabis experiments in three-quarters of U.S. states puts North Carolina on the wrong side of history.

~Constantin Poindexter, CEO Surety One, Inc.

I have spent a quarter of a century building businesses, largely my own but offering a contribution of my humble expertise when it has been requested. Twenty five years ago I was a recent university graduate and a neophyte to the business world so naturally I collected books, magazines, white papers, . . . i.e., whatever I could put my hands on that would (hopefully) support the success of my enterprises. One of the first was a collection of work by Peter Drucker. While some of his wisdom is timeless, I found that there were some major gaps in his thinking.  His definition of “business purpose”, is inadequate.

“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.”, wrote Drucker. A business that grows and remains relevant for many years must have another purpose, . . . to serve a social good. Creating economic value for an enterprise’s owners, employees and the departments of revenue is not “serving a social good”. So what is it?

How do we determine the true “purpose” of a business to ensure that it is one with enduring value? There is a special (albeit very old) tool for uncovering the root of the question. The technique is called the “Five Whys”.  Start with what your enterprise offers, then ask “why”, until you have dug down to the core purpose or “root” of the cause that your business supports. Ex., . . .

• We offer financial services to people!
• Why? Because those people need them.
• Why? Because without them they cannot budget, save, prepare for the future, etc.
• Why would they need to do those things? To live a healthy life, provide for themselves and their families, to save for kids’ college and prepare for a dignified and happy retirement.

So, in the example above we didn’t need to ask “why” five times to arrive at our need. What is the business purpose? It certainly isn’t to “sell financial services” and if that is ALL that it is, then the enterprise wouldn’t last. It serves no social good. We see however that there is more. Looking deeper we perceive a different answer to this example. “What is the business’s purpose? To help people live a healthy life, provide for themselves and their families, to save for kids’ college and prepare for a dignified and happy retirement.”

Keep this “dual purpose” in mind as you develop a business plan. Without the “social good” element as fundamentally equal to the “to market and sell something” one, a business is doomed to failure.

~ Constantin Poindexter, CEO of Surety One, Inc.