Social license to operate: Practical understanding of the concept and processes to attain and maintain it
DOI:
https://doi.org/10.15173/jpc.v5i1.3098Keywords:
communications, public relations, PR, social license to operate, organizational behaviour, stakeholder relations, relationship management, public participationAbstract
This study builds on previous research of social license with the goal of developing a deeper understanding of the concept at the practical and professional levels. The study explores four distinct perspectives of social license: community, business, regulatory, and public participation expert perspective. Additionally, the study seeks to understand the extent to which organizational behaviour affects the social license processes and the role of communication in processes related to social license. Overall, the study’s findings show that the practical understanding of social license is not so different from the theoretical understanding of the concept. While participants emphasize that social license is actually a relationship, they also identify the importance of stakeholders’ perceptions; organizational behaviour and performance; and the interests and values of organizations and stakeholders as key considerations in matters of social license.
©Journal of Professional Communication, all rights reserved.
References
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Bruning, S. D., Castle, J. D., & Schrepfer, E. (2004). Building relationships between organizations and publics: Examining the linkage between organization public relationships, evaluations or satisfaction, and behavioral intent. Communication Studies, 55(3), 435-446.
Bruning, S. D., Dials, M., & Shirka, A. (2008). Using dialogue to build organization–public relationships, engage publics, and positively affect organizational outcomes. Public Relations Review, 34(1), 25-31. doi:10.1016/j.pubrev.2007.08.004
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Dare, M. L., Schirmer, J., & Vanclay, F. (2014). Community engagement and social license to operate. Impact Assessment and Project Appraisal, 32(3), 188-197.
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Grunig, J. E. (2013). Furnishing the edifice: Ongoing research on public relations as a strategic management function. In J.-N. Kim, K. Sriramesh, & A. Zerfass (Eds.), Public relations and communication management: Current trends and emerging topics (pp. 1-26). New York, NY: Routledge.
Gunningham, N., Kagan, R. A., & Thornton, D. (2004). Social license and environmental protection: Why businesses go beyond compliance. Law & Social Inquiry, 29(2), 307-341.
Hall, N., Lacey, J., Cornish-Carr, S., & Dowd, A.-M. (2015). Social license to operate: Understanding how a concept has been translated into practice in energy industries. Journal of Cleaner Production, 86, 301-310. doi: http://dx.doi.org/10.1016/j.jclepro.2014.08.020
Hale, G., & Belanger, Y. (2015). From “social license” to “social partnership:” Promoting shared interests for resource and infrastructure development (Commentary no. 440). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2699104
Howard-Grenville, J., Nash, J., & Coglianese, C. (2008). Constructing the license to operate: Internal factors and their influences on corporate environmental decisions. Law & Policy, 30(1), 73-107.
Hung, C. F. (2005). Exploring types of organization-public relationships and their implications for relationship management in public relations. Journal of Public Relations Research, 17(4), 393-425.
Imperial Oil. (2016). Community & society. Retrieved from http://www.imperialoil.ca/Canada-English/community_ccr2009.aspx
Institute for public relations. (1999). Guidelines for measuring relationships in public relations. Gainesville, FL: Hon, L. C., & Grunig, J. E.
Kaptein, M., & Van Tulder, R. (2003). Toward effective stakeholder dialogue. Business and Society Review, 108(2), 203-224.
Kent, J. A., & Preister, A. (2013, October 21). A social license to operate in the 21st century: Overcoming the clash of two cultures. Oil and Gas Facilities. Retrieved from http://www.energycentral.com/utilitybusiness/businesscorporate/articles/2756/A-Social--to-Operate-in-the-21st-Century-Overcoming-the-Clash-of-Two-Cultures/
Kern, I., Sachs, S., & Rühli, E. (2007). Corporate responsibility from an industry structure perspective: Stakeholder relations and maintaining the license to operate – a comparative case study of the Swiss telecommunications industry. Corporate Governance, 7(4), 446-454.
KPMG. (2013). The community investment divided: Measuring the value of community investment to support your social license to operate. Retrieved from http://www.kpmg.com/ZA/en/IssuesAndInsights/ArticlesPublications/Mining-Indaba/Documents/the-community-investment-dividend.pdf
Lansbury Hall, N., & Jeanneret, T. (2015). Social license to operate: An opportunity to enhance CSR for deeper communication and engagement. Corporate Communications: An International Journal, 20(2), 213-227. doi: 10.1108/CCIJ-01-2014-0005
Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of Management, 34(6), 1152-1189. doi: 10.1177/0149206308324322.
Lotila, P. (2010). Corporate responsiveness to social pressure: An interaction-based model. Journal of Business Ethics, 94(3), 395-409. doi: 10.1007/s10551-009-0272-0
Maclagan, P. (1999). Corporate social responsibility as a participative process. Business Ethics: A European Review, 8(1), 43-49.
McCabe, M., Whiteley, A., & Thomas, G. (2007). Business, government, and community relationships. International Review of Business Research Papers, 3(2), 221-232.
Mellahi, K., & Wood, G. (2003). The role and potential of stakeholders in “hollow participation:” Conventional stakeholder theory and institutionalist alternatives. Business and Society Review, 128(2), 183-202.
Men, L. R., & Hung, C. F. (2012). Exploring the roles of organization-public relationships in the strategic management process: Towards an integrated framework. International Journal of Strategic Communication, 6(2), 151-173. doi:10.1080/1553118X.2011.605778
Moffat, K., & Zhang, A. (2014). The paths to social license to operate: An integrative model explaining community acceptance of mining. Resources Policy, 39, 61-70. doi: 10.1016/j.resourpol.2013.11.003
Pedersen, E. R. (2010). Modelling CSR: How managers understand the responsibilities of business towards society. Journal of Business Ethics, 91(2), 155-166. doi: 10.1007/s10551-009-0078-0
Porter, M. E., & Kramer, M. R. (2008). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
Post, J. E., Preston, L. E., & Sachs, S. (2002). Managing the extended enterprise: The stakeholder view. California Management Review, 45(1), 6-28.
Prexl, A., & Signitzer, B. (2008). Corporate sustainability communications: Aspects of theory and professionalization. Journal of Public Relations Research, 20(1), 1-19. doi: 10.1080/10627260701726996
Prno, J. (2013). An analysis of factors leading to the establishment of a social license to operate in the mining industry. Resources Policy 38(4), 577-590.
Regional Municipality of Wood Buffalo. (2011). Municipal development plan. Retrieved from http://www.rmwb.ca/Doing-Business/Municipal-Development-Plan.htm
Rooney, D., Leach, J., & Ashworth, P. (2014). Doing the social in social license. Social Epistemology, 28(3-4), 209-218. doi: http://dx.doi.org/10.1080/02691728.2014.922644
Sommerfeldt, E. J. (2012). The dynamics of activist power relationships: A structurationist exploration of the segmentation of activist publics. International Journal of Strategic Communication, 6(2), 269-286. doi: 10.1080/1553118X.2012.686256
Suncor. (2016). Community investment. Retrieved from http://www.suncor.com/en/community/297.aspx
Suncor. (2016). Sustainability. Retrieved from http://www.suncor.com/en/responsible/302.aspx?linkid=hS&RD
Syncrude. (2016). Ethics and business conduct. Retrieved from http://www.syncrude.ca/our-company/ethics-and-business-conduct/
Syncrude. (2016). Stakeholder relations. Retrieved from http://www.syncrude.ca/community/stakeholder-relations/
Syncrude. (2016). Sustainability report. Retrieved from http://syncrudesustainability.com/2014/
Thomson, I. (2015, November). Corporate social responsibility: The social license to operate a mine. International Resource Journal. Retrieved from http://www.internationalresourcejournal.com/mining/mining_november_12/the_social_license_to_operate_a_mine.html
Trebeck, K. (2008). Exploring the responsiveness of companies: Corporate social responsibility to stakeholders. Social Responsibility Journal, 4(3), 349-365. doi:10.1108/17471110810892857
Van Ruler, A. B., & Verčič, D. (2003, May). Reflective communication management, A public view on public relations. Paper presented at the 53rd Annual Conference of the International Communication Association, San Diego, CA. Retrieved from http://195.130.87.21:8080/dspace/bitstream/123456789/534/1/Reflective%20Communication%20Management_a%20Public%20View%20on%20Public%20Relations.pdf
Watson, M. (2005). Can there be just one trust? A cross-disciplinary identification of trust definitions and measurement. Submitted to the Institute for Public Relations for the 2004 Ketchum Excellence in Public Relations Award. Retrieved from http://www.instituteforpr.org/topics/trust-definitions-measurement/
Yates, B. F., & Horvath, C. L. (2013). Social license to operate: How to get it, and how to keep it. Pacific Energy Summit 2013 Summit Working Papers. Retrieved from http://nbr.org/research/activity.aspx?id=305
Anderson, C. L., & Bieniaszewska, R. L. (2005). The role of corporate social responsibility in an oil company’s expansion into new territories. Corporate Social Responsibility and Environmental Management, 12(1), 1-9. doi: 10.1002/csr.071
Annesley, J. (2014). Toronto Star Editorial Board CAPP presentation [PowerPoint slides]. Retrieved from http://www.capp.ca/~/media/capp/customer-portal/documents/243382.pdf?la=en
Athabasca Oil Corporation. (2016). Corporate responsibility. Retrieved from https://www.atha.com/corporate-responsibility/
Banerjee, S. B. (2008). Corporate social responsibility: The good, the bad and the ugly. Critical Sociology, 34(1), 51-79. doi: 10.1177/0896920507084623
Barnes, D. (2013, October 30). Alberta’s oil sands epic stretches back more than a century. Edmonton Journal. Retrieved from http://www.edmontonjournal.com/business/history+Alberta+oilsands+epic+stretches+back+more+than/9109610/story.html
Boutilier, R. G., & Thomson, I. (2011). Modeling and measuring the social license to operate: Fruits of a dialogue between theory and practice. Retrieved from http://socialicense.com/publications.html
Bruning, S. D., Castle, J. D., & Schrepfer, E. (2004). Building relationships between organizations and publics: Examining the linkage between organization public relationships, evaluations or satisfaction, and behavioral intent. Communication Studies, 55(3), 435-446.
Bruning, S. D., Dials, M., & Shirka, A. (2008). Using dialogue to build organization–public relationships, engage publics, and positively affect organizational outcomes. Public Relations Review, 34(1), 25-31. doi:10.1016/j.pubrev.2007.08.004
Bursey, D., & Whiting, V. (2015, May). Rethinking social license to operate: A concept in search of definition and boundaries. Environment and Energy Bulletin, 7(2). Retrieved from http://www.bcbc.com/content/1708/EEBv7n2.pdf
Canadian Association of Petroleum Producers. (2015). Responsible Canadian Energy progress report 2014. Retrieved from http://www.capp.ca/responsible-development/responsible-canadian-energy/rce-reports
Canadian Natural Resources. (2016). Our business approach. Retrieved from http://www.cnrl.com/about-cnq/our-business-approach.html
Canadian Natural Resources. (2016). Stewardship report to stakeholders. Retrieved from http://www.cnrl.com/corporate-responsibility/stewardship-report/
Canadian Public Relations Society. (2008). CPRS public relations definition. Retrieved from http://www.cprs.ca/aboutus/mission.aspx
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of moral stakeholders. Business Horizons, 34(4), 39-48.
Cenovus Energy. (2016). Corporate responsibility. Retrieved from http://www.cenovus.com/responsibility/index.html
Cenovus Energy. (2016). Expect respect program. Retrieved from http://www.cenovus.com/responsibility/expect-respect-program.html
Cleland, M. (2013). Unpacking social license: Toward a framework for addressing the social license challenge facing the natural resource sector (Canada West Foundation’s Centre for Natural Resources Policy Research Report). Retrieved from http://cwf.ca/research/publications/unpacking-social-license-discussion-paper/
Cleland, M. (2014). From the ground up: Earning public support for resource development. Retrieved from http://cwf.ca/pdf-docs/publications/From%20the%20Ground%20Up%20Report%20v9.pdf
ConocoPhillips Canada. (2016). Sustainable development process. Retrieved from http://www.cpcsustainability.com/our-approach/our-sustainable-development-process.cfm
Dahlsrud, A. (2006). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1-13. doi: 10.1002/csr.132
Dare, M. L., Schirmer, J., & Vanclay, F. (2014). Community engagement and social license to operate. Impact Assessment and Project Appraisal, 32(3), 188-197.
Davis, R., & Franks, D. (2014). Costs of company-community conflict in the extractive sector. Harvard Kennedy School Corporate Social Responsibility Initiative. Retrieved from http://www.hks.harvard.edu/m-rcbg/CSRI/research/Costs%20of%20Conflict_Davis%20%20Franks.pdf
Duhé, S., & Wright, D. K. (2013). Symmetry, social media, and the enduring imperative of two-way communication. In J.-N. Kim, K. Sriramesh, & A. Zerfass (Eds.), Public relations and communication management: Current trends and emerging topics (pp. 93-107). New York, NY: Routledge.
Edelman. (2015). 2015 Edelman trust barometer global results. Retrieved from http://www.edelman.com/insights/intellectual-property/2015-edelman-trust-barometer/global-results/
Friedman, A. L., & Miles, S. (2002). Developing stakeholder theory. Journal of Management Studies, 39(1), 1-21.
Grunig, J. E. (2013). Furnishing the edifice: Ongoing research on public relations as a strategic management function. In J.-N. Kim, K. Sriramesh, & A. Zerfass (Eds.), Public relations and communication management: Current trends and emerging topics (pp. 1-26). New York, NY: Routledge.
Gunningham, N., Kagan, R. A., & Thornton, D. (2004). Social license and environmental protection: Why businesses go beyond compliance. Law & Social Inquiry, 29(2), 307-341.
Hall, N., Lacey, J., Cornish-Carr, S., & Dowd, A.-M. (2015). Social license to operate: Understanding how a concept has been translated into practice in energy industries. Journal of Cleaner Production, 86, 301-310. doi: http://dx.doi.org/10.1016/j.jclepro.2014.08.020
Hale, G., & Belanger, Y. (2015). From “social license” to “social partnership:” Promoting shared interests for resource and infrastructure development (Commentary no. 440). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2699104
Howard-Grenville, J., Nash, J., & Coglianese, C. (2008). Constructing the license to operate: Internal factors and their influences on corporate environmental decisions. Law & Policy, 30(1), 73-107.
Hung, C. F. (2005). Exploring types of organization-public relationships and their implications for relationship management in public relations. Journal of Public Relations Research, 17(4), 393-425.
Imperial Oil. (2016). Community & society. Retrieved from http://www.imperialoil.ca/Canada-English/community_ccr2009.aspx
Institute for public relations. (1999). Guidelines for measuring relationships in public relations. Gainesville, FL: Hon, L. C., & Grunig, J. E.
Kaptein, M., & Van Tulder, R. (2003). Toward effective stakeholder dialogue. Business and Society Review, 108(2), 203-224.
Kent, J. A., & Preister, A. (2013, October 21). A social license to operate in the 21st century: Overcoming the clash of two cultures. Oil and Gas Facilities. Retrieved from http://www.energycentral.com/utilitybusiness/businesscorporate/articles/2756/A-Social--to-Operate-in-the-21st-Century-Overcoming-the-Clash-of-Two-Cultures/
Kern, I., Sachs, S., & Rühli, E. (2007). Corporate responsibility from an industry structure perspective: Stakeholder relations and maintaining the license to operate – a comparative case study of the Swiss telecommunications industry. Corporate Governance, 7(4), 446-454.
KPMG. (2013). The community investment divided: Measuring the value of community investment to support your social license to operate. Retrieved from http://www.kpmg.com/ZA/en/IssuesAndInsights/ArticlesPublications/Mining-Indaba/Documents/the-community-investment-dividend.pdf
Lansbury Hall, N., & Jeanneret, T. (2015). Social license to operate: An opportunity to enhance CSR for deeper communication and engagement. Corporate Communications: An International Journal, 20(2), 213-227. doi: 10.1108/CCIJ-01-2014-0005
Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of Management, 34(6), 1152-1189. doi: 10.1177/0149206308324322.
Lotila, P. (2010). Corporate responsiveness to social pressure: An interaction-based model. Journal of Business Ethics, 94(3), 395-409. doi: 10.1007/s10551-009-0272-0
Maclagan, P. (1999). Corporate social responsibility as a participative process. Business Ethics: A European Review, 8(1), 43-49.
McCabe, M., Whiteley, A., & Thomas, G. (2007). Business, government, and community relationships. International Review of Business Research Papers, 3(2), 221-232.
Mellahi, K., & Wood, G. (2003). The role and potential of stakeholders in “hollow participation:” Conventional stakeholder theory and institutionalist alternatives. Business and Society Review, 128(2), 183-202.
Men, L. R., & Hung, C. F. (2012). Exploring the roles of organization-public relationships in the strategic management process: Towards an integrated framework. International Journal of Strategic Communication, 6(2), 151-173. doi:10.1080/1553118X.2011.605778
Moffat, K., & Zhang, A. (2014). The paths to social license to operate: An integrative model explaining community acceptance of mining. Resources Policy, 39, 61-70. doi: 10.1016/j.resourpol.2013.11.003
Pedersen, E. R. (2010). Modelling CSR: How managers understand the responsibilities of business towards society. Journal of Business Ethics, 91(2), 155-166. doi: 10.1007/s10551-009-0078-0
Porter, M. E., & Kramer, M. R. (2008). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
Post, J. E., Preston, L. E., & Sachs, S. (2002). Managing the extended enterprise: The stakeholder view. California Management Review, 45(1), 6-28.
Prexl, A., & Signitzer, B. (2008). Corporate sustainability communications: Aspects of theory and professionalization. Journal of Public Relations Research, 20(1), 1-19. doi: 10.1080/10627260701726996
Prno, J. (2013). An analysis of factors leading to the establishment of a social license to operate in the mining industry. Resources Policy 38(4), 577-590.
Regional Municipality of Wood Buffalo. (2011). Municipal development plan. Retrieved from http://www.rmwb.ca/Doing-Business/Municipal-Development-Plan.htm
Rooney, D., Leach, J., & Ashworth, P. (2014). Doing the social in social license. Social Epistemology, 28(3-4), 209-218. doi: http://dx.doi.org/10.1080/02691728.2014.922644
Sommerfeldt, E. J. (2012). The dynamics of activist power relationships: A structurationist exploration of the segmentation of activist publics. International Journal of Strategic Communication, 6(2), 269-286. doi: 10.1080/1553118X.2012.686256
Suncor. (2016). Community investment. Retrieved from http://www.suncor.com/en/community/297.aspx
Suncor. (2016). Sustainability. Retrieved from http://www.suncor.com/en/responsible/302.aspx?linkid=hS&RD
Syncrude. (2016). Ethics and business conduct. Retrieved from http://www.syncrude.ca/our-company/ethics-and-business-conduct/
Syncrude. (2016). Stakeholder relations. Retrieved from http://www.syncrude.ca/community/stakeholder-relations/
Syncrude. (2016). Sustainability report. Retrieved from http://syncrudesustainability.com/2014/
Thomson, I. (2015, November). Corporate social responsibility: The social license to operate a mine. International Resource Journal. Retrieved from http://www.internationalresourcejournal.com/mining/mining_november_12/the_social_license_to_operate_a_mine.html
Trebeck, K. (2008). Exploring the responsiveness of companies: Corporate social responsibility to stakeholders. Social Responsibility Journal, 4(3), 349-365. doi:10.1108/17471110810892857
Van Ruler, A. B., & Verčič, D. (2003, May). Reflective communication management, A public view on public relations. Paper presented at the 53rd Annual Conference of the International Communication Association, San Diego, CA. Retrieved from http://195.130.87.21:8080/dspace/bitstream/123456789/534/1/Reflective%20Communication%20Management_a%20Public%20View%20on%20Public%20Relations.pdf
Watson, M. (2005). Can there be just one trust? A cross-disciplinary identification of trust definitions and measurement. Submitted to the Institute for Public Relations for the 2004 Ketchum Excellence in Public Relations Award. Retrieved from http://www.instituteforpr.org/topics/trust-definitions-measurement/
Yates, B. F., & Horvath, C. L. (2013). Social license to operate: How to get it, and how to keep it. Pacific Energy Summit 2013 Summit Working Papers. Retrieved from http://nbr.org/research/activity.aspx?id=305
