The Social License to Operate is a term coined in the late nineties, particularly linked to the Mining Sector, referring to the legitimate authorization of the communities where mega-projects are developed.
In Mexico, companies with projects that have significant socio-environmental impacts face the great challenge of obtaining and maintaining the Social License to Operate (SLO) and ensuring their viability. This license is not a physical permit but an intangible endorsement granted by the community in which the company operates. It is based on the social acceptance of the company’s activities and projects and is crucial for its long-term success.
Obtaining this license is not a straightforward or singular process. It is an ongoing process, wherein project proponents must collaborate closely with diverse stakeholders to attain levels of empowerment and involvement that surpass conventional project management. Once the license is acquired, it becomes imperative to uphold it throughout the project lifespan, necessitating active management.
What is the significance of the Social License to Operate (SLO)?
The Social License to Operate is fundamental for several reasons. First, it allows companies to operate with greater security and stability of operations, reducing the risks and costs involved in social conflicts associated with mismanagement in this area. A community that actively participates in the benefits that projects can bring, joins the company’s efforts to make them prosper, and is less likely to generate conflicts or blockades.
Another important factor of having a healthy SLO is the significant improvement of an organization’s reputation. Good management demonstrates that the company is responsible and committed to sustainable development, appealing even to responsible consumers who demand that companies properly manage the environment and the communities in which they are located.
The SLO opens up new business opportunities. Companies with this license can access new markets and customers who value sustainability and social responsibility. In turn, it contributes to the sustainable development of communities. Companies that obtain the SLO usually invest in social and environmental projects that benefit the communities in which they operate.
Brief description of the step-by-step to obtain the Social License to Operate
Conduct a context analysis:
- Understand the social, economic, political and environmental environment in which the company operates.
- Identify the key stakeholders with whom you need to interact to obtain the SLO, such as the community, local authorities, non-governmental organizations and other interest groups.
- Assess the expectations and concerns of these key stakeholders.
- Establish an SLO policy:
- Define the company’s commitment to social responsibility and sustainable development.
- Establish clear principles for SLO management.
- Assign responsibilities within the company for the implementation of the SLO policy.
- Build relationships with the community:
- Establish effective communication channels with the community, such as public meetings, newsletters and social networks.
- Promote dialogue and community participation in decision-making.
- Demonstrate transparency and accountability in all activities.
- Implement social responsibility programs:
- Develop and implement programs that benefit the community, such as educational, health, employment, and economic development projects.
- Involve the community in the definition and execution of these programs.
- Monitor and evaluate the impact of these programs in the community.
Possible problems to be observed
Insufficient comprehension among the community concerning a company’s operations can potentially sow seeds of mistrust, fueled by awareness of adverse incidents. Moreover, the inability to foster dialogue with the community has the potential to ignite future conflicts.
Considering the business perspective, it is important to factor in the capacity to execute social responsibility initiatives aimed at mitigating adverse effects. Furthermore, it is crucial to closely monitor any alterations in legislation or regulations that have an impact on, or contribute to, the management of the Social License to Operate.
What can Socionaut do to help companies in Mexico acquire the Social License to Operate?
Socionaut is a company that specializes in managing SLO for projects in intricate contexts. Its consultants have extensive experience in diverse sectors such as mining, oil, infrastructure, and energy megaprojects, providing valuable contributions throughout various project stages. Their team of experts is capable of assisting you with:
- Conduct a context analysis
- Establish an SLO policy
- Build sustainable community relationships
- Implement social responsibility programs
In addition to:
- Identify key stakeholders with whom you need to interact to obtain the SLO.
- Develop effective communication plans to inform the community about your activities
- Implementing social responsibility programs that benefit the community
- Monitor and evaluate the impact of your activities on the community.
Socionaut brings forth its expertise and knowledge to support you in designing and implementing socially responsible projects. These projects are aligned with the goal of achieving Sustainable Livelihood Outcomes (SLO) and nurturing enduring relationships with stakeholders, particularly the communities within your sphere of influence. Visit their website to explore further details on how they can assist you in attaining your business objectives sustainably.
