A Social License to Operate (SLO) is the ongoing acceptance of a company, a project, or a specific activity by the people who live and work within its sphere of influence. Did you know that, unlike environmental permits and other authorizations granted by the government, it can change? This is because it stems from the perceptions that the public forms regarding an operation, and depends on the legitimacy, credibility, and trust that underpin this relationship.
A guide to engagement developed by the IFC and published by the World Bank summarizes this nature by explaining that the Social License to Operate takes time to earn, can be lost quickly, and must be strengthened and maintained throughout a project’s entire life cycle.
We at Raízes, as a social enterprise that has been working with communities for 20 years, understand that we need to challenge the conventional way some companies view the Social License to Operate — as if it could be achieved through a series of one-off actions designed primarily to reduce resistance and “get a problem out of the way.”
What underpins this acceptance is the quality of the relationships built in the region… Relationships that must recognize those who live there as individuals with rights, memories, knowledge, and decision-making power — and not as an obstacle to be managed so that an operation can move forward.
Where did this concept of LSO come from?
The concept of a Social License to Operate initially gained traction among mining companies and other extractive industries in response to growing concerns about the social and environmental impacts of their activities. Today, it also encompasses various types of enterprises, such as those in infrastructure, energy, tourism, and agribusiness. In all these cases, complying with legal obligations is essential, but it does not, on its own, ensure the trust of those who live with the changes caused by an operation on a daily basis.
Formal instruments such as Conduct Adjustment Agreements (CAAs) may establish obligations, deadlines, compensation, and mitigation measures, but they rarely address the most human aspects: memories, bonds, losses, expectations, fears, past conflicts, and differing views on the future.
In contexts of reparations, for example, social dialogue often begins when trust has already been deeply shaken. There are people who have lost their homes, their ways of life, their peace of mind, or the ability to move freely through places that were part of their history. Treating this reality merely as a reputational or operational risk limits our understanding of what is at stake. Before expecting a community to trust it again, a company must acknowledge the impacts it has caused, take responsibility, and demonstrate—through concrete and consistent decisions—that it is willing to review its conduct and fulfill the commitments it has made.
How is the Social License to Operate developed?
A relationship of this nature begins long before a public meeting or the presentation of a finalized plan. It requires understanding who makes up that community, how people organize themselves, which groups participate in formal decision-making forums, and which groups remain largely unheard, even though they are also affected. A community is never a homogeneous bloc: within it coexist different generations, interests, economic activities, identities, power relations, and ways of viewing the same initiative.
Therefore, identifying stakeholders and listening to recognized leaders is only part of the process. It is also necessary to reach out to women, young people, older adults, small business owners, workers, and traditional peoples and communities.
Active listening, in this context, must have tangible results. Throughout our work, we have encountered many communities that had already responded to surveys, participated in assessments, and hosted teams from various institutions without ever knowing what became of the information they shared or seeing any concrete follow-up actions. As we discussed in the article “Does Every Project Need to Start with an Assessment?”, this history can lead to legitimate resistance.
Part of this process also involves providing clear information about impacts, risks, limitations, and possibilities; creating spaces where participation can truly influence decisions; establishing accessible channels for questions, criticism, and complaints; sharing the results of public consultations; honoring the agreements made; and transparently explaining what cannot be accomplished.
What We’ve Learned in 20 Years of Operation
Over the course of two decades, Raízes has carried out more than 100 projects, directly reached more than 23,000 people, and supported hundreds of small businesses and community initiatives. We have traveled through municipalities affected by mining, Amazonian territories, tourist destinations, and various rural and urban settings. More than just a geographic reach, this journey has allowed us to realize how a method that works in one context may need to be entirely rethought in another. What they have in common, however, is the importance of open and empathetic listening, combined with clear communication of their objectives and limitations. And for long-term projects to proceed effectively, it is essential to incorporate community relations and the implementation of socio-environmental projects into their core scope as an ongoing strategic initiative—rather than as a reaction to emergencies.
If you want to make a real difference in a region, with quality and a solid reputation, get in touch with us!
