Chicago Mayor Brandon Johnson Imposes Diversity Standards on City Contracts

Chicago Mayor Brandon Johnson has signed an executive order requiring companies bidding on city contracts to disclose the diversity of their leadership demographics. The new measure also stipulates that contractors must report any connections they have with certain law enforcement agencies, including U.S. Immigration and Customs Enforcement (ICE). The mayor's decision to enforce these new standards reflects a broader move to leverage the city's purchasing power to promote social and corporate responsibility.

In a statement, Mayor Johnson emphasized the importance of using city resources to ensure that the businesses operating within Chicago reflect the community's diversity. "If you want to do business with this city, we want to know whether the people leading your company reflect the diversity of the communities whose tax dollars are paying your contracts," he said.

The Department of Homeland Security (DHS) has criticized the mayor's actions, accusing him of attempting to punish American companies for their involvement with ICE. A DHS spokesperson said in a statement that Chicago mayor was "a sanctuary politician who bullies American companies with money that isn't his," and accused him of taking federal funds while ignoring federal law.

Despite the DHS's concerns, Mayor Johnson maintains that his executive order is a necessary response to corporate influence in Washington and a means for Chicago to demonstrate its commitment to its values. During a press conference at Arise Chicago, a non-profit that advocates for immigrants' rights, Johnson outlined the details of the new order and emphasized the city's intention to put its values into practice through spending.

The order, which is expected to be implemented within the next 90 days, also requires Chicago's chief procurement officer to develop rules that bar vendors found to have violated public integrity, workplace discrimination, or wage theft in the previous five years from bidding on city contracts. Additionally, contractors must disclose whether they have received more than $500,000 from government or law enforcement agencies, or if they are facing proceedings related to excessive force, unlawful detention, unconstitutional policing, discrimination, or other civil rights violations.

Under the order, large private companies with corporate families reporting at least $1 billion in net income must provide information about leadership diversity, board composition, and diversity policies. Furthermore, contractors must report efforts to hire and promote formerly incarcerated individuals, and future awardees must update the disclosures at least annually.

The campaign "Not With Our Money," which joined Mayor Johnson in announcing the executive order, identified $3.19 billion in Chicago contracts held by 42 firms that also do business with ICE. The group's research highlights the extent of the potential impact of the mayor's new policy.

While the order does not disqualify companies solely for doing business with ICE, it does make public the disclosures of integrity, discrimination, or wage theft violations, potentially affecting their ability to secure future city contracts. Mayor Johnson's executive order marks a significant shift in the way the city of Chicago approaches contracting, aiming to foster a more inclusive and responsible business environment.