IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v107y2025ics0301420725001990.html

Social license to operate: an institutional critique and research framework

Author

Listed:
  • Glückler, Johannes
  • Gutiérrez, Denise

Abstract

The concept of Social License to Operate (SLO) addresses the need for mutual acceptance among governments, civil society, and private actors of what is considered as legitimate resource development. We identify two key shortcomings in current understandings of SLO: a dominant managerial lens that fails to account for the collective and institutional dimensions of an SLO, and the flawed belief that the mere absence of conflict signifies the presence of a social license. To address these gaps, we conceptualize SLO as a social institution, introduce a heuristic framework for empirical analysis, and explore the role of governance in fostering and sustaining an SLO. A reconstruction of the arduous evolution of a mining project in Chile illustrates how this framework helps assess institutional alignment, trace the governance process, and understand place-specific SLO dynamics. We conclude by emphasizing how this perspective offers practical insights for achieving inclusive development in resource-dependent regions.

Suggested Citation

  • Glückler, Johannes & Gutiérrez, Denise, 2025. "Social license to operate: an institutional critique and research framework," Resources Policy, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:jrpoli:v:107:y:2025:i:c:s0301420725001990
    DOI: 10.1016/j.resourpol.2025.105657
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420725001990
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2025.105657?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Owen, John R. & Kemp, Deanna, 2013. "Social licence and mining: A critical perspective," Resources Policy, Elsevier, vol. 38(1), pages 29-35.
    2. Prno, Jason & Scott Slocombe, D., 2012. "Exploring the origins of ‘social license to operate’ in the mining sector: Perspectives from governance and sustainability theories," Resources Policy, Elsevier, vol. 37(3), pages 346-357.
    3. Bice, Sara & Brueckner, Martin & Pforr, Christof, 2017. "Putting social license to operate on the map: A social, actuarial and political risk and licensing model (SAP Model)," Resources Policy, Elsevier, vol. 53(C), pages 46-55.
    4. Alan Greenspan, 2002. "Corporate governance," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(03), pages 3-6, October.
    5. Parsons, Richard & Lacey, Justine & Moffat, Kieren, 2014. "Maintaining legitimacy of a contested practice: How the minerals industry understands its ‘social licence to operate’," Resources Policy, Elsevier, vol. 41(C), pages 83-90.
    6. Andr�s Rodr�guez-Pose, 2013. "Do Institutions Matter for Regional Development?," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1034-1047, July.
    7. Marais, Lochner & Matebesi, Sethulego & van der Watt, Phia, 2024. "Social licensing and dependencies: Implications for mine closure in South Africa," Resources Policy, Elsevier, vol. 95(C).
    8. ., 2003. "System patterns: dominant governmental direction," Chapters, in: Economic Institutions and Complexity, chapter 7, pages 97-118, Edward Elgar Publishing.
    9. Johannes Glückler & Harald Bathelt, 2017. "Institutional context and innovation," Chapters, in: Harald Bathelt & Patrick Cohendet & Sebastian Henn & Laurent Simon (ed.), The Elgar Companion to Innovation and Knowledge Creation, chapter 8, pages 121-137, Edward Elgar Publishing.
    10. Richard Heeks & Christopher Foster & Yanuar Nugroho, 2014. "New models of inclusive innovation for development," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 175-185, October.
    11. Li, George Yunxiong & Ascani, Andrea & Iammarino, Simona, 2024. "The material basis of modern technologies. A case study on rare metals," Research Policy, Elsevier, vol. 53(1).
    12. Geoffrey M. Hodgson, 2006. "What Are Institutions?," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(1), pages 1-25, March.
    13. Mariana Walter, 2008. "Nuevos conflictos ambientales mineros en Argentina. El caso Esquel (2002-2003)," Revista Iberoamericana de Economía Ecológica, Red Iberoamericana de Economía Ecológica, vol. 8, pages 15-28.
    14. Johannes Glückler & Yannick Eckhardt, 2022. "Illicit innovation and institutional folding: From purity to naturalness in the Bavarian brewing industry [Medical use of cannabis and cannabinoids containing products—regulations in Europe and North America]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 605-630.
    15. Meesters, Marieke Evelien & Behagel, Jelle Hendrik, 2017. "The Social Licence to Operate: Ambiguities and the neutralization of harm in Mongolia," Resources Policy, Elsevier, vol. 53(C), pages 274-282.
    16. Emily D. Heaphy, 2013. "Repairing Breaches with Rules: Maintaining Institutions in the Face of Everyday Disruptions," Organization Science, INFORMS, vol. 24(5), pages 1291-1315, October.
    17. Geert Demuijnck & Björn Fasterling, 2016. "The Social License to Operate," Journal of Business Ethics, Springer, vol. 136(4), pages 675-685, July.
    18. Liebowitz, S J & Margolis, Stephen E, 1995. "Path Dependence, Lock-in, and History," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 205-226, April.
    19. Breakey, Hugh & Wood, Graham & Sampford, Charles, 2025. "Understanding and defining the social license to operate: Social acceptance, local values, overall moral legitimacy, and ‘moral authority’," Resources Policy, Elsevier, vol. 102(C).
    20. Johannes Glückler & Regina Lenz, 2016. "How institutions moderate the effectiveness of regional policy: A framework and research agenda," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 36, pages 255-277.
    21. Stuart, Alice & Bond, Alan & Franco, Aldina M.A. & Baker, Julia & Gerrard, Chris & Danino, Vittoria & Jones, Kylie, 2023. "Conceptualising social licence to operate," Resources Policy, Elsevier, vol. 85(PA).
    22. Smits, Coco C.A. & van Leeuwen, Judith & van Tatenhove, Jan P.M., 2017. "Oil and gas development in Greenland: A social license to operate, trust and legitimacy in environmental governance," Resources Policy, Elsevier, vol. 53(C), pages 109-116.
    23. Stephens, Siân & Robinson, Bryan Michael Kenneth, 2021. "The social license to operate in the onshore wind energy industry: A comparative case study of Scotland and South Africa," Energy Policy, Elsevier, vol. 148(PB).
    24. ., 2003. "Coordination routines: governance," Chapters, in: Economic Institutions and Complexity, chapter 5, pages 70-81, Edward Elgar Publishing.
    25. Timothy M. Gill, 2017. "Unpacking the world cultural toolkit in socialist Venezuela: national sovereignty, human rights and anti-NGO legislation," Third World Quarterly, Taylor & Francis Journals, vol. 38(3), pages 621-635, March.
    26. Ciaran O'Faircheallaigh & Sally Babidge, 2023. "Negotiated Agreements, Indigenous Peoples and Extractive Industry in the Salar de Atacama, Chile: When Is an Agreement More than a Contract?," Development and Change, International Institute of Social Studies, vol. 54(3), pages 641-670, May.
    27. Santiago, Ana Lúcia & Demajorovic, Jacques & Rossetto, Dennys Eduardo & Luke, Hanabeth, 2021. "Understanding the fundamentals of the Social Licence to Operate: Its evolution, current state of development and future avenues for research," Resources Policy, Elsevier, vol. 70(C).
    28. Curran, Louise, 2024. "Investor state dispute settlement (ISDS) and the social licence to operate of international business: An analysis of controversial cases," International Business Review, Elsevier, vol. 33(2).
    29. Dumbrell, Nikki P. & Adamson, David & Wheeler, Sarah Ann, 2020. "Is social licence a response to government and market failures? Evidence from the literature," Resources Policy, Elsevier, vol. 69(C).
    30. Moffat, Kieren & Zhang, Airong, 2014. "The paths to social licence to operate: An integrative model explaining community acceptance of mining," Resources Policy, Elsevier, vol. 39(C), pages 61-70.
    31. Alina Rocha Menocal, 2020. "Why does inclusion matter?: Assessing the links between inclusive processes and inclusive outcomes," OECD Development Co-operation Working Papers 71, OECD Publishing.
    32. Mikesell, Raymond F, 1997. "Explaining the resource curse, with special reference to mineral-exporting countries," Resources Policy, Elsevier, vol. 23(4), pages 191-199, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yıldız, Taşkın Deniz & Kural, Orhan, 2020. "The effects of the mining operation activities permit process on the mining sector in Turkey," Resources Policy, Elsevier, vol. 69(C).
    2. Brueckner, Martin & Eabrasu, Marian, 2018. "Pinning down the social license to operate (SLO): The problem of normative complexity," Resources Policy, Elsevier, vol. 59(C), pages 217-226.
    3. Alberto Diantini & Salvatore Eugenio Pappalardo & Tim Edwards Powers & Daniele Codato & Giuseppe Della Fera & Marco Heredia-R & Francesco Facchinelli & Edoardo Crescini & Massimo De Marchi, 2020. "Is this a Real Choice? Critical Exploration of the Social License to Operate in the Oil Extraction Context of the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    4. Santiago, Ana Lúcia & Demajorovic, Jacques & Rossetto, Dennys Eduardo & Luke, Hanabeth, 2021. "Understanding the fundamentals of the Social Licence to Operate: Its evolution, current state of development and future avenues for research," Resources Policy, Elsevier, vol. 70(C).
    5. Amoako, Kwame Oduro & Lord, Beverley R. & Dixon, Keith, 2021. "Narrative accounting for mining in Ghana: An old defence against a new threat?," Resources Policy, Elsevier, vol. 74(C).
    6. Demajorovic, Jacques & Lopes, Juliana Campos & Santiago, Ana Lucia Frezzatti, 2019. "The Samarco dam disaster: A grave challenge to social license to operate discourse," Resources Policy, Elsevier, vol. 61(C), pages 273-282.
    7. Voyer, Dr Michelle & van Leeuwen, Dr Judith, 2019. "‘Social license to operate’ in the Blue Economy," Resources Policy, Elsevier, vol. 62(C), pages 102-113.
    8. Shuna Shu Ham Ho & Chang Hoon Oh & Daniel Shapiro, 2024. "Can Corporate Social Responsibility Lead to Social License? A Sentiment and Emotion Analysis," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 445-476, March.
    9. Deberdt, Raphael & Smith, Nicole M. & Malone, Aaron & Bullock, Robin, 2025. "From opposition to conditional acceptance: Corporate environmental and socio-economic engagement in critical minerals mining in Michigan," Resources Policy, Elsevier, vol. 110(C).
    10. Zanini, Marco Tulio Fundão & Migueles, Carmen Pires & Gambirage, Cinara & Silva, Jaison, 2023. "Barriers to local community participation in mining projects: The eroding role of power imbalance and information asymmetry," Resources Policy, Elsevier, vol. 86(PB).
    11. Leeuwerik, R.N.C. & Rozemeijer, M.J.C. & van Leeuwen, J., 2021. "Conceptualizing the interaction of context, process and status in the Social License to operate: The case of marine diamond mining in Namibia," Resources Policy, Elsevier, vol. 73(C).
    12. Xu, Min & Liu, Yong & Cui, Caiyun & Xia, Bo & Ke, Yongjian & Skitmore, Martin, 2023. "Social acceptance of NIMBY facilities: A comparative study between public acceptance and the social license to operate analytical frameworks," Land Use Policy, Elsevier, vol. 124(C).
    13. Marian Eabrasu & Martin Brueckner & Rochelle Spencer, 2021. "A social licence to operate legitimacy test: Enhancing sustainability through contact quality," Post-Print hal-04455602, HAL.
    14. Mercer-Mapstone, Lucy & Rifkin, Will & Moffat, Kieren & Louis, Winnifred, 2017. "Conceptualising the role of dialogue in social licence to operate," Resources Policy, Elsevier, vol. 54(C), pages 137-146.
    15. Chang Hoon Oh & Jiyoung Shin & Shuna Shu Ham Ho, 2023. "Conflicts between mining companies and communities: Institutional environments and conflict resolution approaches," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(2), pages 638-656, April.
    16. Richert, Claire & Rogers, Abbie & Burton, Michael, 2015. "Measuring the extent of a Social License to Operate: The influence of marine biodiversity offsets in the oil and gas sector in Western Australia," Resources Policy, Elsevier, vol. 43(C), pages 121-129.
    17. António Mateus & Luís Martins, 2021. "Building a mineral-based value chain in Europe: the balance between social acceptance and secure supply," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(2), pages 239-261, July.
    18. Stuart, Alice & Bond, Alan & Franco, Aldina M.A. & Baker, Julia & Gerrard, Chris & Danino, Vittoria & Jones, Kylie, 2023. "Conceptualising social licence to operate," Resources Policy, Elsevier, vol. 85(PA).
    19. Daniel M. Shapiro & Carlos Vecino & Jing Li, 2018. "Exploring China’s state-led FDI model: Evidence from the extractive sectors in Latin America," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 11-37, March.
    20. França Pimenta, Adriano Augusto & Demajorovic, Jacques & Saraiva de Souza, Maria Tereza & de Carvalho Pedro, Samara & Pisano, Viviane, 2021. "Social licence to operate model: Critical factors of social acceptance of mining in the Brazilian Amazon," Resources Policy, Elsevier, vol. 74(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:107:y:2025:i:c:s0301420725001990. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.