Corporations Divest Nearly $60 Million From Private Prison Industry

[MindMover]

Three corporations announced their divestment from Corrections Corporation of America (CCA) and GEO Group, the two largest private prison companies in the United States, late last week.

Scopia Capital Management, DSM North America, and Amica Mutual Insurance pulled nearly $60 million in investments from CCA and GEO Group in the final quarter of 2013, marking full divestment for DSM and Amica and a 27 percent decrease in shares for Scopia. (Scopia has decreased its private prison stock by 59 percent since December 2012.) Their announcements mark the first round of success for civil rights nonprofit Color of Change, which has been pushing over 150 companies to divest from for-profit incarceration companies since last year. Color of Change is one of 16 organizations working towards these divestment goals as part of the National Prison Divestment Campaign.

"Companies that continue to stay with their investments in CCA and GEO Group are making a real decision about where they want their money and the ethical obligations they have to the greater society," Color of Change Executive Director Rashad Robinson told Mother Jones. Human rights advocates strongly oppose private prisons, alleging that they prioritize profit over rehabilitation and help fuel mass incarceration. Privately owned prisons have also been shown to have higher levels of violence and recidivism.

The founders of asset management company Scopia Capital, who donate to Democratic politicians like Colorado Senators Mark Udall and Michael Bennet, and have ties to other progressive organizations, have drawn criticism in the past for their company's stake in GEO Group. In its 2013 end-of-year filing, Scopia reported owning 4,320,339 shares of GEO Group, down from 10,621,223 shares at the end of 2012. According to Color of Change, the company has committed to a full divestment of GEO Group holdings, and is on pace to reach this target within the coming year.

http://www.motherjones.com/mojo/2014/04/investment-corporations-divest-60-million-private-prison-cca-geo-group

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OMG -- Ethical behavior from Corporations ....

[Jesus Malverde]

1. More like "peak" incarceration...

You can only lock up so many people.

Those companies likely are disappointed in what was a growth industry. If the administration follows through with clemency for drug offenders we'll see negative growth in the "industry".