Risk management within the cannabis industry: Building a framework for the cannabis industry

Thirty states and the District of Columbia have legalized the use of cannabis for medicinal and/or recreational use by either formally or informally de‐criminalizing its use. However, cannabis remains a Schedule 1 drug under the Federal Controlled Substances Act (21 U.S.C. Sections 801 through 812), leaving federal law in conflict with the laws of over half of the states. As a result, market participants in legal cannabis businesses face risks due to the industry's unique legal status within the United States. We examine the risks and challenges deemed by the cannabis industry as the top risks facing the industry's continued future growth and its sustainability. In addition to general risks inherent in a nascent industry, a legal cannabis business faces additional risks, such as risks in its banking and finance activity, placement of insurance, payment of taxes, and managing its supply chain. These legal businesses also face true legal risk from the possibility of being shut down by the federal government and seizure of assets and product under the CSA. This paper also examines whether the cannabis industry would benefit from a futures market to mitigate price risk.     

American youth consumption of licit and illicit substances

Using a representative sample of the 2001 National School‐based Youth Risk Behavior Survey, this study investigated the contemporaneous and intertemporal relationship between the use of licit and illicit substances by American youth between the ages 12 and 18. The results indicated a strong contemporaneous relationship between smoking cigarettes, drinking alcohol, smoking marijuana, and using cocaine. The results supported the gateway hypothesis indicating that prior smoking of cigarettes is significantly associated with the probability of current marijuana and cocaine use, as prior drinking of alcohol is significantly associated with the probability of current marijuana and cocaine use. The results also showed that males had a higher probability of using cocaine than females, whereas black students had a higher probability of smoking marijuana and using cocaine than white students. Age and race were associated with marijuana and cocaine use, but cocaine use was further linked with the factors of gender, region, and metropolitan area. These findings could have implications for public policies regarding prevention.     

Cannabis Usage in Tourism: sA Sociological Perspective

Abstract

The present study aims to investigate the social forces that shape tourists’ motives in consuming cannabis while on vacation. The underlying premise of this paper is that cannabis consumption in tourism is driven and influenced by the wider process of the normalization of cannabis use in Western societies and, therefore, should be examined in this context. Using a grounded theory approach, this study suggests four umbrella groups of motivations to consume cannabis while traveling: experimentation, pleasure and diversion‐seeking, quest for authenticity, and accessible purchasing. Each category is illuminated and discussed, respectively, in the light of four theoretical explanations: loosening of social control, the leisure behavioral continuum, shaping and manifestation of social identity, and smuggling as a deviant career. Given the lack of previous research, it is suggested that these explanations can be viewed as an initial framework for further investigation of this under‐explored topic. The paper concludes by examining several theoretical and epistemological issues revolving around the relationships between cannabis use, tourism and everyday life.     

Smoke and Mirrors? Disclosures in the Marijuana Industry in Canada

Licensed producers (LPs) of marijuana in Canada are embedded in a highly competitive industry where they raise funds from investors to finance their growth. They face substantial risks from the uncertain legal status of marijuana and from its unsettled health and safety consequences. We argue that this context stands to have implications for the disclosures of firms in the marijuana industry. We rely on a multicase study of three large Canadian LPs to explore their mandatory and voluntary disclosures during the third quarter of 2018. We find that their mandatory interim disclosures are largely consistent with disclosure rules that target marijuana operations. We also find that they make voluntary disclosures relevant for their context (e.g., about risks from legal, health, and safety consequences), and that there is variation in these disclosures. We use our findings as a springboard for discussing the antecedents of mandatory and voluntary disclosures in the marijuana industry (i.e., proprietary costs, investor interest, detection costs of selective disclosures), and their consequence (i.e., lack of comparability). We offer suggestions for future research.     

Twitter use related to reality television characters: Association with increased marijuana use

In the United States, there are debates about marijuana legalization for either medical or recreational use. These debates may be reflected in traditional media, such as reality television, and through social media, such as Facebook or Twitter. We study the relationship of social media use for reality television topics and marijuana use. We surveyed 572 college students about marijuana use, demographic characteristics, reality television related Facebook and Twitter use, and other reality television variables. Logistic regression analyses studied the relationships of these variables to marijuana use. Following a reality television character on Twitter was significantly associated with increased odds for marijuana use. Reality television Facebook use was not significantly associated with marijuana use. In addition, women and Asian Americans were significantly associated with decreased odds for marijuana use. Those born in the United States were significantly associated with increased odds for marijuana use. Attitudes for reality television is fun, perceived realism of reality television, and behavior of watching a reality television program on health/medical topics were not associated with marijuana use. As following a reality television character on Twitter is significantly associated with increased odds for marijuana use, marketing campaigns can play a role with use of Twitter whether advocating for use or against use of marijuana. Marketing implications are provided regarding Twitter use for the various areas where marijuana use is either illegal or legal.     

Motivating intention to take action on behalf of an out-group: implications for the use of advocacy messages in social marketing strategies

ABSTRACT

In psychological research, the Social Identity Theory has been used to explain people’s motivation to take action in support of causes predominantly with a focus on in-group action. This study takes up the call to extend the limited attention given to intent-to-act on behalf of an out-group. Our research investigates support for the legalisation of medical marijuana (an out-group) and concludes that message structure is critical to increasing the likelihood of intent-to-act in support of an out-group. Specifically, we show that messages delivered from a legitimate advocate for the issue will generate empathy towards those affected and anger towards the perceived injustice, motivating intent to take action. Social marketers, charged with engaging communities to support programmes targeted at disadvantaged minority groups within the population, will benefit from the results of this research.