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Social License to Operate

The social license to operate is sometimes referred to as social license or license to operate. The basic idea of licensing is that an entity requires the approval of society to exist and to pursue certain projects, ranging from individuals driving a car to friends starting a restaurant, to multinational enterprises digging a new mine. Approvals are needed for the corporation and for each activity it undertakes. In most cases, these approvals are routine. However, when an activity is contested, the social license to operate becomes a salient concern for corporations and society. Social license reflects the acceptability of a corporation or specific corporate activities to social stakeholders and is especially important in heavy or extractive industries such as paper manufacturing or mining. This ...

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