Social Licence

A social licence is an understanding between an organisation and the wider community based on the idea the business is not just meeting its legal obligations but also taking into account the impact on the community and environment, and its role in the wider society.

It is often cited in association with farming and businesses whose operations impact on the environment. The core of a Social Licence to Operate (SLO) is being responsible, transparent and accountable.

Organisations that focus on being ethical, sustainable and socially responsible take into account the needs of all of their stakeholders, including customers, employees, suppliers, local communities, and the environment.

These can also extend to wider social and environmental responsibilities, such as their impact on climate change and human rights.

A organisation with a social licence is more likely to be successful in the long term, as it is better able to maintain its reputation and trust with its stakeholders, customers, and the wider public.

To be successful in the longer term it is important for organisations to understand and manage the risks associated with their operations. This is key to maintaining their SLO.