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.
A core contribution of the research is clarifying how institutional complexity influences stakeholder engagement strategies. Organizations face field-level norms—from environmental regulation to cultural conventions—and must translate these into actionable, local-level practices. The study shows that firms effectively use stakeholder theory to navigate conflicting demands by mapping stakeholder salience, identifying normative expectations, and deploying tailored responses that satisfy both formal institutions and community actors. This integrative approach allows firms to reconcile broad sectoral pressures (such as net-zero commitments) with local legitimacy—essential when communities challenge or support projects based not only on law but on cultural resonance and trust.
For practitioners, this framework offers a robust roadmap: secure social license by operating at the intersection of institutional compliance and stakeholder legitimacy. It encourages mining executives, infrastructure planners, and policymakers to map institutional ecosystems, identify key stakeholder logics, and design engagement strategies that are both normatively sound and locally credible. From an academic standpoint, the study bridges macro- and micro-level theories—showing that sustainable extraction and infrastructure require navigating formal rules and informal norms alike. Ultimately, this work underscores that achieving and maintaining SLO demands more than legal compliance; it requires a strategic, theory-informed approach to stakeholder alignment and institutional legitimacy.