“The Social License to Operate: A Critical Review” by Moffat, Lacey, Zhang, and Leipold (2015) is a foundational academic work that systematically examines the evolution, application, and limitations of the concept of Social License to Operate (SLO) in the extractive industries. The authors trace the emergence of SLO from a grassroots tool for community empowerment to a widely adopted—though inconsistently defined—mechanism used by companies to secure legitimacy and stability in resource projects. Their review emphasizes that SLO is not a formal or legal requirement, but a dynamic, informal agreement rooted in trust, mutual respect, and ongoing relationships between project proponents and affected communities.
The paper categorizes SLO into three ascending levels: legitimacy (based on adherence to rules and norms), credibility (linked to transparency and competency), and trust (grounded in fairness and shared values). The authors argue that many companies mistakenly view SLO as a one-time milestone rather than a process that must be earned and re-earned throughout a project’s life cycle. They highlight how failure to recognize community agencies, ignore local values, or limit participation to consultation-only models can undermine SLO and lead to conflict, delays, and even project shutdowns. The authors also critique superficial applications of SLO as public relations tools, rather than genuine engagement strategies.
Crucially, Moffat et al. call for more rigorous stakeholder analysis and integration of social science insights into mining governance frameworks. They recommend that companies adopt adaptive management approaches that reflect local complexities and shift expectations over time. The review’s framework is particularly relevant to contemporary developments such as Peru’s EITI subnational governance reforms, the African push for mineral sovereignty, and OECD-led dialogues on responsible mineral supply chains. In all these contexts, the paper’s message is clear: a social license is not granted—it is co-produced through sustained, respectful, and transparent engagement.