Social License to Operate (SLO)

What Is the Social License to Operate (SLO)?

The social license to operate (SLO), or basically social license, alludes to the continuous acceptance of a company or industry's standard business practices and operating procedures by its employees, partners, and the overall population. The concept of social license is closely related to the concept of sustainability and the [triple base line](/triple-primary concern).

Understanding the Social License to Operate (SLO)

The SLO is made and kept up with slowly over the long haul as a company builds trust with the community it operates in and different partners. A company must be seen operating capably, dealing with its employees and the environment, and being a good corporate citizen. At the point when issues do happen, the company must act rapidly to determine the issues, or the SLO is put in harm's way.

SLO is hard to characterize and difficult to measure. Companies and industries frequently run into the concept just when it is too late.

High-profile calamities, for example, BP's Deepwater Horizon oil spill, are nightmares for companies and whole industries' social license, yet even more modest issues can have an impact. The casual public remarks of a chief executive officer (CEO) can compromise a company's social license, and these indiscretions frequently end up with the culprit being canned and condemned by the company.

The Increasing Standards for Social License to Operate (SLO)

The standards to which companies are expected to act are expanding over the long haul. Things that could never have been unusual a long time back, for example, child labor and risky working conditions, are banned in numerous nations. Things that were not unusual quite a while back, for example, every male executive and board individuals, prejudicial hiring practices, and outsourcing to districts without comparative labor rules, are currently under a magnifying glass and might be on out.

Over the long haul, these changes feel like common sense — of course, tobacco ads shouldn't target kids and processing plants ought not be pumping waste into streams. In any case, these now no actions were once viewed as smart business tactics.

To safeguard and build social license, companies are encouraged to initially make the best choice and afterward be seen making the best choice. This means assessing and reconsidering supply chains, squander management, human resource management, and the wide range of various parts of a business with a critical eye.

Executives need to ask themselves similar inquiries they envision an offended press would think of. Would it be advisable for us to purchase from the least cost provider? What do we are familiar their operation? Are we going to be up to speed in something like the 2013 Bangladesh factory collapse? Do we treat our own staff reasonably?

A few things that seemed OK five or quite a while back from a cost-reducing viewpoint can expense a company considerably more over the long haul assuming it jeopardizes their social license.

Features

• The social license to operate (SLO), or basically social license, alludes to the continuous acceptance of a company or industry's standard business practices and operating procedures by its employees, partners, and the overall population.
• SLO is made and kept up with slowly over the long run as a company builds trust with the community it operates in and different partners.
• To safeguard and build social license, companies are encouraged to initially make the best choice and afterward be seen making the best choice.