Insights: Moffat and Zhang

The paths to social licence to operate: An integrative model explaining community acceptance of mining

"My company spends US$7 million per year on community programs. We still face work interruptions from the communities we help. Obviously the money does not buy us the goodwill we need. But I have no idea where we are missing the point." (Managing Director of an oil company, from Zandvleit and Anderson (2009, p5).)

Highlights

  • We measure and model key variables in the social licence to operate.
  • We demonstrate that the social licence construct can be assessed empirically.
  • Worse than expected impacts reduced trust and acceptance of a mining operation among stakeholders.
  • Quality of contact between company and community, not quantity, predicted trust.
  • Procedural fairness was the strongest predictor of trust in our model.

 

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