Social License

 Human beings are perhaps never more frightening than when they are convinced beyond doubt that they are right...........Laurens van der Post (South African explorer and writer, 1906-96)

A social license is the informal acceptance or approval that a community and stakeholders give to an organization or project. Unlike a legal license issued by a government, a social license is not a formal document. It is earned through factors such as:

• Ethical business practices
• Transparency and honest communication
• Meaningful stakeholder engagement
• Respect for local communities
• Environmental responsibility

For example, an oil company may have all the required legal permits, but if the local community strongly oppose the project because of environmental concerns, the company may be considered to have lost its social license to operate.

While more than 90% of economists expect AI adoption to increase, they also expect productivity gains may take longer to materialize. Benefits are likely to be uneven and depend on investment in skills, infrastructure and Social License. 

Other areas affecting productivity:

• What process or practice in our business is becoming less sustainable each year?
• What are the trends for the top and bottom lines?
• How will changes in the availability of labor, resources, or supplies affect us?
• How might political, regulatory, or legal shifts impact our business?

Maintaining a strong social license is often critical for long-term success.

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