Cui Bono? Assessing Community Engagement in San Francisco Community Benefit Agreements

Madeline Buitelaar

doi:10.3390/soc9010025

Abstract

A community benefit agreement (CBA) that provides tax breaks to a company often has provisions to help uplift the area where the business resides. A number of San Francisco companies, especially those in the technology sector, have received tax relief, a tangible benefit granted in exchange for operating in designated blighted areas, the details of which are delineated in publicly available CBAs. One CBA requirement for the tax break—community engagement—defies easy measurement. This paper assesses whether San Francisco companies were held accountable for fulfilling this unclear but core CBA requirement, namely, engagement with disenfranchised community members, an important part of their corporate social responsibility. To assess the community engagement stipulation of CBAs, this paper presents background on CBAs followed by interview data from two anonymous community liaisons who were formerly or are currently responsible for community engagement at companies that received the tax break. Themes found in the interview data highlight the limitations of CBAs that result from the unequal social exchange between companies and the indigent residents of blighted areas where the businesses are located. The study concludes that the benefits of the vague and unenforceable community engagement provision of CBAs do not justify the companies’ payroll tax exclusion. The disproportionality of this quid pro quo risks aggravating impoverished residents’ resentment of companies and their employees. The relevance of this study’s low participation rate among community liaisons is also discussed.

Highlights

Simultaneous with its technology boom, San Francisco, California (USA), has experienced a crisis in which new wealth has deepened socioeconomic divisions [1,2]
San Francisco that are located in depressed areas have received tax breaks in exchange for helping the surrounding communities, an endeavor that is in line with corporate social responsibility (CSR) [3]
To assess the community engagement stipulation of community benefit agreement (CBA), this paper presents background on CBAs that provides context for interview data from two anonymous community liaisons that were responsible for community engagement at companies receiving the CBA tax break

Summary

Introduction

Simultaneous with its technology boom, San Francisco, California (USA), has experienced a crisis in which new wealth has deepened socioeconomic divisions [1,2]. San Francisco that are located in depressed areas have received tax breaks in exchange for helping the surrounding communities, an endeavor that is in line with corporate social responsibility (CSR) [3] This type of arrangement can be controversial, such as when Amazon reneged on a decision to establish a corporate campus in Queens, New York. In this high-profile case, concerns emerged about how this move might aggravate gentrification by giving the company a disproportionate tax incentive compared with the benefits that the community would receive in exchange [4]. San Francisco’s trajectory, considered by some as an “assault on the poor” [5] (p. 14), has prompted attempts to revitalize depressed urban areas

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Conclusion