SLO Institutional Foundations and Stakeholder Theory

A team of researchers published a significant study examining the institutional foundations of social license to operate (SLO) through the lens of stakeholder theory. They argue that SLO isn’t just about satisfying community demands but is deeply embedded in the complex interplay of institutional logics, including regulatory frameworks, cultural norms, corporate governance, and industry expectations. Drawing on institutional theory, the paper highlights that organizations seeking social legitimacy must operate within a field shaped by competing pressures: compliance with formal rules, adherence to societal norms, and alignment with community values. Stakeholder theory complements this, offering a micro‑level view on how firms must respond to stakeholder claims and expectations to secure sustained legitimacy.