What is Social Licence to Operate?
Social licence to operate is the ongoing acceptance of an organization’s activities by local communities and the broader public. Social licence is not granted by regulators or written into law. It is shaped by how people are impacted by what you do and how you do it.
That acceptance can grow, remain, or fall away. When it shifts, it can directly influence a project at any point in its life cycle.
Community acceptance shapes outcomes
Community views play a real role in how projects unfold. When people feel heard and see benefits, projects are more likely to move ahead with fewer issues. When trust is low, even well-planned projects can face delays, pushback, or cancellation.
This is true across sectors. Mining, agriculture, renewable energy and infrastructure all operate close to communities. Local concerns about land use, environment, jobs and fairness can shape decisions at every stage.
Social licence is not optional. It directly affects timelines, costs, and long-term success.
The rising cost of social risk
The cost of losing social licence
When social licence breaks down the impacts can be significant. Projects may be delayed for months or years. Costs can increase, trust can break down, and reputations can take a long time to recover.
In some cases, projects do not proceed at all. Around the world, unresolved community concerns have contributed to billions of dollars in delayed or cancelled investment.
These outcomes are often described as social risk. At their core, they reflect a gap between what organizations plan and what communities expect or experience.
Community relationships have always influenced project success. Today, they are more visible, and more scrutinised as environmental and social awareness have grown.
The limits of traditional engagement
Most organizations rely on consultation processes that hear from a small group of people, often those who are highly engaged or strongly opinionated.
These voices matter, but they don’t always reflect the wider community. Quieter, less visible and smaller groups are often missing.
This creates an incomplete view of public opinion. Decisions are then made without understanding how the broader community sees the organization or its operations.
Without that broader view, it becomes harder to understand risk, build trust, or respond in a way that reflects local and national priorities.
Trust sits at the heart of social licence
Trust is central to social licence. When communities trust an organization, they are more likely to accept its activities, even when there are concerns or trade-offs.
Trust is built gradually with open listening and following through on commitments. When organizations understand what drives trust, they can focus on the actions that matter most and strengthen relationships over the long term
Stronger trust leads to more stable relationships which support more consistent and predictable project outcomes.
Social licence can be measured
Social licence is not just a feeling. It can be studied and understood in a structured way.
Our approach to Engagement Science combines social research and data analysis to understand people’s lived experiences and what shapes their views and expectations. It looks at patterns across a whole community, not just a small group.
This approach helps identify the drivers of trust and acceptance. It moves beyond assumptions and provides clear, evidence-based insight into community relationships.
With better insight, organizations can respond earlier, make more informed choices, and manage risk more effectively.
See our impact
Understanding communities leads to better outcomes
Organizations that understand community concerns are better placed to manage social risk. They can identify issues earlier, respond more effectively, and build stronger relationships over the long term.
This leads to more stable projects, fewer disruptions, and better outcomes for both organizations and communities.
Social licence is not something you secure once. It is built through actions, relationships and trust.
