What is the concept of Social License to Operate primarily based on?

The concept of Social License to Operate is primarily rooted in the idea of reputation as a responsible operator. This concept reflects the ongoing acceptance and approval from the community and stakeholders for a company's operations, which goes beyond legal compliance and regulatory requirements. A strong social license is built on trust, transparency, and a demonstrated commitment to social responsibility, taking into account the interests and concerns of local communities and other stakeholders.

While legal requirements, financial performance, and market share can influence a company's standing, they do not encompass the holistic and relational aspects integral to the Social License to Operate. This license is fundamentally about how a company is perceived and accepted by society, emphasizing corporate social responsibility and ethical conduct as pivotal components in the attainment and maintenance of legitimacy and support from those affected by its operations.