THE EVOLUTION OF SOCIAL LICENCE Glenn Johnson, Editor, Process Technology
The “social licence to operate” term first came about in reference to mining companies, but now almost every company must be seen to be operating responsibly.
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he term “social licence” has been around for about half a century, but its present usage as “social licence to operate” is generally accepted to be associated originally with the resources industry in the early 2000s. The term emerged as a recognition that companies, especially those involved in resource extraction like mining, needed more than just legal permits to operate successfully. It highlighted the importance of earning and maintaining the trust and acceptance of local communities, stakeholders and the broader public.
In more recent times, the concept has evolved beyond its initial association with mining companies and has become a crucial consideration for businesses across various other industries. Today, virtually any company, regardless of its sector, is expected to demonstrate a commitment to responsible and ethical practices. This includes not only complying with legal requirements but also engaging in activities that contribute positively to society, the environment and the wellbeing of employees. It should be remembered that the concept of social licence actually reflects, not a legal