California Takes a Historic Step to Require Corporations to Disclose Profits from Slavery

In a profound move towards accountability and transparency, California stands on the verge of becoming the first state in the United States to mandate that corporations assert under oath whether they or their predecessors have profited from slavery. This landmark legislation, known as the Truth in Disclosure Act (AB 2599), was recently passed by the California State Legislature and awaits the signature of Governor Gavin Newsom.

The legislation, championed by Assemblymember Isaac Bryan and strongly backed by the California Legislative Black Caucus, will require corporations operating in California with annual revenues exceeding $100 million to submit sworn affidavits. These affidavits will declare any engagement with or profits from slavery-related activities, dating back to historic transactions, under penalties for perjury. Furthermore, all such disclosures will be stored in a publicly accessible state database, enabling journalists, researchers, and advocates to trace historical profits from slavery into present-day corporate wealth.

California has historically been at the forefront of various progressive legislation concerning ethical practices across sectors, from climate action to supply chain transparency. However, it is unprecedented for any state to enforce a mandate for corporations to acknowledge their complicity in the slave economy. The reality of historical profit gained through slavery remains concealed, allowing corporations to benefit without accountability. As Assemblymember Bryan stated at the press conference, “For too long, corporations have been allowed to benefit from the economic engine of slavery while avoiding any public accounting of that history.” He emphasized that this legislation is a moral imperative, revealing which companies flourished on the backs of enslaved individuals and establishing a truthful engagement with this dark part of American history.

Supporters of the bill, including members of the Alliance for Reparations, Reconciliation, and Truth (ARRT), have vocalized the necessity of such transparency for generations. Kaci Y. Patterson, a key figure in the Black Equity Collective, noted, “Truth must precede repair.” This sentiment echoes throughout the community, advocating for a tangible shift in how historical injustices are confronted and rectified.

Numerous advocates have underlined that enactment of AB 2599 would provide a framework for reparative justice. The legislation is viewed as an essential step toward addressing systemic disparities and inequities that stem from slavery's legacy. Proponents strongly believe that understanding corporate histories intertwined with enslavement can facilitate conversations around reparations and broader social justice initiatives. As James Woodson, CEO of the California Black Power Network noted, “The harm has been documented... What corporations have profited from that harm has never been documented, and AB 2599 would change that.”

The move towards this unprecedented disclosure aligns with international discourses about the accountability for slavery and its impacts. The United Nations' recent acknowledgment of the transatlantic slave trade as a grave violation against humanity serves as a backdrop for California's legislative push. AB 2599 seeks to translate this moral and reparative mandate into actionable policy, advocating for a reconciliatory approach grounded in truth.

Furthermore, AB 2599 follows a series of legislative measures pursued by California to address the historical injustices faced by descendants of enslaved individuals. In previous years, Governor Newsom has signed bills that include formal apologies, initiatives to trace lineage of descendants, and the establishment of the Bureau for Descendants of American Slavery.

The Truth in Disclosure Act not only promotes transparency but is also viewed as a crucial part of the ongoing reparative justice dialogue in California. By compelling corporations to officially acknowledge and disclose their historical ties to slavery, this legislation embarks on a critical journey to rectify historical wrongdoings. It sets a precedent that could inspire similar initiatives nationwide, presenting a model of accountability that shakes the foundations of corporate ethics.

As the state moves forward, many eagerly await Governor Newsom’s decision on this impactful legislation. Signing AB 2599 would mark a significant chapter in California's reparative efforts, making it the first state to intertwine corporate ethics with the historical context of slavery in a legal framework, and finally providing a pathway for reckoning with the past while promoting a more equitable future.