The term “social license to operate” is commonly used to describe communities´ and key stakeholders´ acceptance of a company and its operations.
The license to operate is an informal and unspoken social contract between a company and the communities it impacts. Without the tacit approval of communities, businesses risk being rejected or forced out and cannot operate profitably in the long run.
But public expectations of business are growing, and license to operate may no longer be enough. Going deeper in community engagement can lead to a “license to thrive” that enables companies to meaningfully support communities while building a positive rapport that benefits the business.
Writing in Triple Pundit, Elliott Wall of Synergos Consulting Services explores this concept, and shares the example of how Ambuja Cements Ltd., India’s top cement manufacturing company, is putting it into practice.