Conceptualizing Social License to Operate

In recent academic literature, the concept of Social License to Operate (SLO) has been redefined as more than just informal approval—it’s now understood as a dynamic, community-based form of legitimacy that companies must earn and continually maintain. Scholars emphasize that SLO is fundamentally an “informal social contract” rooted in mutual respect, dialogue, and alignment between a mining project’s goals and the values of the affected community. Unlike legal permits, which are granted by the state, SLO reflects the trust and acceptance of the people most impacted by resource development. This shift has reframed SLO as a form of “soft power,” critical to mitigating conflict, preventing project delays, and ensuring long-term viability.