Social License to Operate

Oxford Learner's Dictionaries: License/ˈlaɪsns/ [countable] 

- An official document that shows that permission has been given to do, own or use something.

Learningforsustainability.com: "Social License to Operate (SLO) refers to the level of acceptance or approval by local communities and stakeholders of organizations and their operations. It is based on the idea that institutions and companies need not only regulatory permission but also “social permission” to conduct their business. It is an outcome from the ways that our companies and institutions manage themselves (ethics, labour practices, sustainability, etc.) in their wider environment, and their risk communication and engagement activities with their stakeholders. Social license does not refer to a formal agreement or document but to the real or current credibility, reliability, and acceptance of organizations and projects."

Many high-tech or complex projects fail to anticipate public reactions and to proactively, constructively engage with stakeholders. As a result, the project or plan is compromised, often with important budgetary consequences. Furthermore, the actors involved and associated with the project need to engage in damage control operations and risk to incur a lasting bad reputation. ESSET ENGAGE offers services to proactively engage with stakeholders, in order to create a positive dynamics for major infrastructural or engineering projects.

By definition, stakeholders are parties that can impact or will be impacted by the project: Authorities that need to deliver permits, citizens living in the neighborhood, suppliers and contractors, etc. After a process of identification and mapping of stakeholder groups, ESSET ENGAGE designs and delivers the approaches to constructively and methodologically work towards the objectives*. By exploring the expectations and concerns of stakeholders at an early stage of the project, they can be integrated and addressed before they turn into (major) issues.

*Relevant norms:

  • GRI/GSSB norm GRI-413 on local communities

  • GRI/GSSB norm GR-414 on supplier social assessment

  • ISO-14001 and ISO-50001: stakeholder participation in environment and energy management systems

References that can be disclosed:

  • In 2010, ESSET ENGAGE consultants were responsible for the stakeholder engagement processes leading to the approval of MYRRHA, the construction of a highly innovative nuclear research infrastructure (budget: 1.5 billion €) in Mol, Belgium. This required stakeholder engagement processes in Belgian federal governmental circles, at European Commission level, but equally, a hands-on approach in local municipalities, involving local politicians and citizens.

  • Flemish Agency of the Environment (VMM) - Social License to Operate on flood risk territories in Flanders (2012).