Wikipedia

World Business Chicago

World Business Chicago (WBC) is the official economic development organization for the City of Chicago. WBC is a public-private partnership and a 501(c)(3) nonprofit organization supported by funding from the City of Chicago, philanthropies, and the business community. In 2019, WBC reported $8.9 million in revenue.[1] The stated mission of the organization is "to drive inclusive economic growth and job creation, support business, and promote Chicago as a leading global city."[2]

World Business Chicago
World Business Chicago
Formation1999; 25 years ago (1999)
FounderRichard M. Daley
TypeEconomic development organization
Legal statusPublic-private partnership
HeadquartersChicago
CEO
Michael Fassnacht
Chairperson
Lori Lightfoot, Mayor of Chicago
Websitewww.worldbusinesschicago.com

History edit

World Business Chicago began as a privately funded organization in 1999, formed by the Civic Committee of the Commercial Club and the Chicagoland Chamber of Commerce, with a focus on international marketing and corporate recruitment for Chicago.[3] In 2000, WBC merged with the Chicago Partnership for Economic Development, an initiative founded by Mayor Richard M. Daley in 1999, and officially incorporated as the city's public-private economic development agency. The chairperson's role would be held by the Mayor of Chicago.[4] Paul O'Connor, son of TV reporter Len O'Connor and a former journalist and aide of news writer and columnist Mike Royko, was appointed as the organization's first executive director.[5]

Under O'Connor, WBC was responsible for several significant corporate relocations into the downtown Chicago area, including the relocation of Boeing headquarters from Seattle to Chicago in 2001.[6] In 2007, O'Connor stepped down as WBC's executive director and was replaced by Rita Athas, a longtime aide to Mayor Daley.[7] She subsequently oversaw several headquarters relocations, including Veolia Environment, MillerCoors,[8] and Tempel Steel[9] in 2008.[10]

In 2009 and 2010, Athas also led WBC's efforts, along with the City of Chicago, to support the relocation of United Airlines' operational headquarters into Willis Tower.[11] Though the move was billed as "one of Chicago's largest corporate relocations ever,"[12] it was controversial due to its use of $25 million in public tax increment financing (TIF) to incentivize the move, despite not creating any new jobs.[13]

In 2011, Rahm Emanuel was inaugurated as Mayor of Chicago and appointed the new chairperson of WBC.[14] He expanded the board of directors from 15 to 50 people, largely top business leaders for private and public companies in the Chicago area.[15] He also appointed Michael Sacks, CEO of GCM Grosvenor, as WBC's first vice chairman.[16] Under Emanuel's direction, WBC developed the Plan for Economic Growth and Jobs,[17] which identified ten economic development strategies for the City of Chicago, including manufacturing, transportation and logistics, and entrepreneurship.[18]

In early 2013, Athas announced her resignation as president of WBC.[19] In June 2013, she was replaced by Jeff Malehorn, former president and CEO of GE Capital, to serve as CEO of WBC and lead the organization's efforts in support of the Plan for Economic Growth and Jobs.[20][21] Between 2013 and 2014, WBC's revenue doubled from $4.6 million to $8.1 million,[22] and in 2015, WBC's revenue grew to $9.9 million.[23] In 2017, after allegations that he was abusing company resources and fostering a toxic workplace culture, Malehorn issued a formal apology to WBC staff.[24] A few months later, he was removed as CEO and replaced by Andrea Zopp, former Deputy Mayor, Chief Neighborhood Officer, under Rahm Emanuel.[25]

Under Zopp's leadership, WBC's expenses outpaced revenue year-over-year, even as revenue declined from $10.5 million in 2017 to $6.6 million in 2019.[26] Despite these failings, she was named one of the "Most Powerful Women in Chicago Business" in 2018 by Crain's Chicago Business.[27]

After Lori Lightfoot was elected mayor in April 2019, she replaced Rahm Emanuel as chairperson of WBC. In June 2019, she appointed Mellody Hobson, president and CEO of Ariel Investments, to serve as the new vice chair.[28]

In 2020, Andrea Zopp announced her departure as CEO of WBC.[29] Michael Fassnacht, the former CEO and president of FCB in Chicago, was initially named as interim CEO of WBC, accepting a token salary of $1 per year.[30] In May 2021, he was officially instated as the organization's CEO.[31]

Chicago Sister Cities International edit

In 1956, at the direction of President Dwight D. Eisenhower, the United States began the sister city program as a means of cultural exchange between cities in different countries. The partnerships between cities were administered by the National League of Cities until 1967 and the official formation of Sister Cities International, a nonprofit citizen diplomacy network.

In 1960, Chicago formed its first Sister Cities agreement with Warsaw, Poland, and launched the Chicago Sister Cities International Program.[32] In the 1970s and 1980s, the program added seven additional Sister Cities, and in 1990, Mayor Richard M. Daley officially established a volunteer board of directors for the organization.[33] Chicago Sister Cities operated as an independent nonprofit organization until 2013, when it was officially merged with WBC.[34]

In 2014 and 2017, Chicago Sister Cities International was named "Best Overall Program for Cities with Population Greater than 500,001" by Sister Cities International.[35][36]

Controversies edit

In 2011, the Inspector General of Chicago identified a conflict of interest that made it possible for WBC board members to utilize the organization as a means of gaining third-party verification for grants and subsidies.[37][38] Three years later, WBC updated its ethics and conflict of interest rules.[39]

In 2016, WBC sponsored a delegation of business executives, educators, and politicians for a visit to Rome, Italy.[40] Private attendees of the delegation paid for the trip themselves, though Rahm Emanuel and other city hall staff had their costs paid by WBC. The organization was criticized for using its public funding from the City of Chicago to fund the trip.[41]

In 2019, WBC received criticism for being used as an organization to shield mayoral advisors from abiding by the City of Chicago's rule that requires Chicago employees to live within city limits.[42] Lisa Schneider-Fabes, then-president of the District 39 school board in nearby Wilmette, Illinois, where she also resided, served as a transition advisor to Lori Lightfoot. The day Lightfoot was sworn in as mayor, Schneider-Fabes was hired at World Business Chicago, where she continued to advise Lightfoot, including attending senior staff meetings, human resources interviews, and planning for major speeches in the mayor's office. She resigned from WBC in December 2019 after an Inspector General investigation into her role.[43]

Programs edit

  • Blackstone Inclusive Entrepreneurship Challenge: Launched in 2017 to provide underserved entrepreneurs in Chicago greater access to resources and opportunities for growth by investing in local non-profits who scaled their programs. Supported by the Blackstone Charitable Foundation.[44]
  • Chicago Sister Cities International: The largest and most active sister cities organization in the United States.
  • Chicago Venture Summit: An annual venture capital conference originally launched in 2014.[45]
  • ChicagoNEXT: WBC's innovation and venture strategy program, launched in 2012 by J.B. Pritzker and an independent council of more than 250 technology and business executives.[46]
  • ThinkChicago: A talent attraction and recruitment program for high school students considering or specializing in STEM-related fields. Since 2010, more than 3,000 students have participated in the program.[47]

References edit

  1. ^ "2019 Annual Report" (PDF). World Business Chicago. June 2020.
  2. ^ "Who We Are". World Business Chicago. Retrieved 2021-06-17.
  3. ^ "Inside the private group that guides Chicago's economic development policy". Crain's Chicago Business. 2015-10-10. Archived from the original on 2021-02-13. Retrieved 2021-06-18.
  4. ^ "World Business Chicago: News and Reports". Archived from the original on 2001-07-16. Retrieved 2021-06-24.
  5. ^ Miner, Michael (17 January 2008). "One Newspaper Is Like One Horse". Chicago Reader. Retrieved 2021-06-17.
  6. ^ Schmeltzer, John (11 May 2001). "Chicago Snags Boeing". The Chicago Tribune. Retrieved 11 July 2021.
  7. ^ "World Business Chicago Names Rita Athas New Executive Director". www.illinoisvc.org. Retrieved 2021-07-11.
  8. ^ "MillerCoors selects Chicago for headquarters". The Denver Post. Associated Press. 2008-07-15. Retrieved 2021-07-11.
  9. ^ "Tempel Steel to Expand Its Chicago Plant". The Chicago Tribune. 22 August 2008. Retrieved 11 July 2021.
  10. ^ "World Business Chicago 2008 Annual Report" (PDF). 1 April 2008. Archived (PDF) from the original on 9 May 2013. Retrieved 11 July 2021.
  11. ^ "World Business Chicago 2009 Annual Report" (PDF). 1 April 2009. Archived (PDF) from the original on 9 May 2013. Retrieved 11 July 2021.
  12. ^ "United Airlines | World Business Chicago | Economic Development, Chicago, Illinois". Archived from the original on 2011-07-16. Retrieved 2021-07-11.
  13. ^ Communications, Christopher Lee-AFA-CWA. "Chicago mayor hands over millions to United Airlines". Association of Flight Attendants-CWA - AFA United MEC. Retrieved 2021-07-11.
  14. ^ DAVEY, MONICA; FITZSIMMONS, EMMA GRAVES (2011-02-23). "Emanuel Triumphs in Chicago Mayoral Race". The New York Times. ISSN 0362-4331. Retrieved 2021-07-11.
  15. ^ "Mayor Emanuel Announces New Board of World Business Chicago With Nearly 50 Leading Chicago Businesspeople". www.chicago.gov. Retrieved 2021-07-11.
  16. ^ Dumke, Ben Joravsky, Mick (27 October 2011). "Rahm's A-list". Chicago Reader. Retrieved 2021-07-11.{{cite web}}: CS1 maint: multiple names: authors list (link)
  17. ^ "Plan for Economic Growth and Jobs" (PDF). WTTW. 1 February 2012. Retrieved 12 July 2021.
  18. ^ "Plan for Economic Growth & Jobs". WTTW News. Retrieved 2021-07-11.
  19. ^ "World Business Chicago to Seek New Leadership - Rita Athas Stepping Down as President in 2013". World Business Chicago. 2012-12-13. Retrieved 2021-07-13.
  20. ^ "Mayor Emanuel and World Business Chicago Announce Jeff Malehorn as New President & CEO of World Business Chicago". www.chicago.gov. Retrieved 2021-07-11.
  21. ^ Bomkamp, Samantha. "Malehorn to be next head of World Business Chicago". nydailynews.com. Retrieved 2021-07-13.
  22. ^ "World Business Chicago 2014 Annual Report" (PDF). 1 April 2015. Retrieved 12 July 2021.
  23. ^ "World Business Chicago 2015 Annual Report" (PDF). 1 April 2016. Retrieved 12 July 2021.
  24. ^ "How much trouble is the city's economic development chief in?". Crain's Chicago Business. 2017-05-02. Retrieved 2021-07-11.
  25. ^ "Andrea Zopp Named President & CEO of World Business Chicago". World Business Chicago. 2017-11-06. Retrieved 2021-07-11.
  26. ^ Roberts, Ken Schwencke, Mike Tigas, Sisi Wei, Alec Glassford, Andrea Suozzo, Brandon (9 May 2013). "World Business Chicago - Nonprofit Explorer". ProPublica. Retrieved 2021-07-22.{{cite web}}: CS1 maint: multiple names: authors list (link)
  27. ^ "The most powerful women in Chicago Business". www.chicagobusiness.com. Retrieved 2021-07-23.
  28. ^ "Mayor Lightfoot Appoints Mellody Hobson To Serve as Vice Chair of World Business Chicago". www.chicago.gov. Retrieved 2021-07-23.
  29. ^ Channick, Robert. "Andrea Zopp stepping down as CEO of World Business Chicago". chicagotribune.com. Retrieved 2021-07-23.
  30. ^ "Ex-FCB exec Michael Fassnacht on his new role as the City of Chicago's CMO". adage.com. 2020-04-06. Retrieved 2021-07-23.
  31. ^ Spielman, Fran (2021-05-12). "$1-a-year chief marketing officer handed permanent job to run World Business Chicago". Chicago Sun-Times. Retrieved 2021-07-11.
  32. ^ reporter, Charles Leroux, Tribune staff. "Chicago has assembled a sorority of sister cities". chicagotribune.com. Retrieved 2021-07-23.{{cite web}}: CS1 maint: multiple names: authors list (link)
  33. ^ "Who We Are". Chicago Sister Cities. Retrieved 2021-07-23.
  34. ^ "Sister cities: Chicago's international family". WBEZ Chicago. 2014-07-15. Retrieved 2021-07-23.
  35. ^ "Sister Cities International (SCI)". Sister Cities International (SCI). Retrieved 2021-07-23.
  36. ^ "Sister Cities International (SCI)". Sister Cities International (SCI). Retrieved 2021-07-23.
  37. ^ "Inspector general finds conflict of interest at World Business Chicago". WBEZ Chicago. 2011-07-26. Retrieved 2021-07-11.
  38. ^ "World Business Chicago: Helping the masses or just a few? – Illinois Business Law Journal". Retrieved 2021-07-23.
  39. ^ "World Business Chicago Approves Strong New Policies on Ethics and Conflicts of Interest, Transparency of Operations and Advocacy". World Business Chicago. 2011-11-04. Retrieved 2021-07-23.
  40. ^ "Secretive Organization Pays Tab For Mayor Emanuel's Trip To Rome". 2016-11-16. Retrieved 2021-07-11.
  41. ^ "City-backed organization footing the bill for Mayor Emanuel's trip to Rome". WGN-TV. 2016-11-17. Retrieved 2021-07-23.
  42. ^ Byrne, John; Perez, Juan Jr. "Despite residency rules, World Business Chicago VP, Wilmette school board president holds a key role in Mayor Lori Lightfoot's orbit". chicagotribune.com. Retrieved 2021-07-11.
  43. ^ "Wilmette Resident Resigns From Chicago Roles Amid Probe: Report". Wilmette-Kenilworth, IL Patch. 2019-12-10. Retrieved 2021-07-23.
  44. ^ "Blackstone Charitable Foundation and World Business Chicago Announce $1.7 Million Awarded for Next Phase of the Blackstone Inclusive Entrepreneurship Challenge". 26 June 2018. Retrieved 23 July 2021.
  45. ^ Elahi, Amina. "Chicago Venture Summit makes its own pitch: Invest in city's startups". chicagotribune.com. Retrieved 2021-07-23.
  46. ^ "Innovation & Venture Strategy (ChicagoNEXT)". World Business Chicago. 20 August 2018. Retrieved 2021-07-23.
  47. ^ "About Us & the Organizers". ThinkChicago. Retrieved 2021-07-23.
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