4 Social licence to operate Licence to operate, social licence, privilege to operate, social responsibility, community licence, how we do business…Emerged from the forestry and mining industries in the 1990s when they needed to recover their reputationSLO is ongoing local community and stakeholder approval or acceptance of the activities of a resource developmentDevelopment of a MBIE funded research programme across the primary sectorsInternational collaboration with CSIRO and University of TasmaniaLocal collaboration with FOA, Lincoln University, University of Otago and Plant & FoodPreston, 2014
5 Trust – underpinning social licence Moffat & Zhang, 2014
6 What’s trust? Meeting of mutual expectations Engagement – quality and quantityPowerKnowledgeTruthProcedural fairness
9 Social Responsibility SustainabilitySocial LicenceSocial ResponsibilityThe status quo was not good enough! The term Social Licence was not in use yet.Regardless, as we know social licence today, it was broken back then.Just as it has been broken at Kalamazoo Michigan, the Deepwater Horizon, the Exxon Valdez, Lac Megantic Quebec, Mt. Polley …Social Licence has come to mean meeting social expectations beyond the law.It is not easily or objectively measured It demands transparency, accountability and continuous improvementIt requires “public engagement”It proposes that Environmental and Safety performance are looked at before productivity, quality, efficiency, cost => profitSocial Licence -- “public opinion” – driven by ReputationIt has roots in:Sustainability --- which is Driven by Compliance & Risk -- “it is the law” , andSocial Responsibility – which is driven by Leadership -- “it is good business”.Tim Ryan, 2014
10 Social Responsibility SustainabilitySocial LicenceSocial ResponsibilityEnvironmental complianceStakeholder theoryExternality theorySocial cost
11 RA2: Developing Framework RA1: Exploring TrustHypothesis:Trust is a key element on the establishment of SLOInvestigation:How is trust built in the ‘post-truth’ societyIs/was trust a factor or is it contractual or something else?Human interface/ mechanisms of engagementRA3: ApplicationRA2: Developing FrameworkValidation – does the framework work?Hypothesis:SLO fits within a sustainability framework, including CSRHypothesis:SLO concepts can/can’t be applied across a supply/value networkLearning LoopInvestigation:What framework can we apply to test SLO in practiceat scale andacross different value chains?Theoretical framework will determine the methods for case study analysisInvestigation:Testing the application of the framework using practical case studies
12 Current situation Outputs and impacts Outcomes A breakdown in societal trust formation and retention is compounded due to the emergence of a ‘Post-truth’ societyRA1: Exploring Trust. The building blocks of trust in social licence will be determined, from our analysis of the impact of the ‘post-truth’ society on trust in the social licence context. Stakeholders will have the tools to identify levels of trust that has been built in communities and what tips communities towards distrust.Stakeholders can apply the broad principles (building blocks) of social licence, and also will have the means to determine where communities stand in terms of trust (temperature gauge). Application of these principles and the ability to gauge trust allows for early identification of social licence slippage.No framework exists to adequately measure social licence through evaluation of the preferences of different individuals within a stakeholder group and across stakeholder groupsRA2: Developing framework. Provide valuable quantitative measures and insights for development of holistic policies for social license to operate that could more effectively account for the preferences of the people while also accounting for geographic specific characteristics.Holistic policy development around social licence that accounts for incorporation of stakeholder preferences and geographic nuances.Lack of understanding of scale or value chain implications on social licenceRA3: Applications. Identify through practical application of framework (i.e. evaluation via case studies) how value chain position and scale aspects impact on social licence and trust formation. Integration of stakeholder preferences via participatory action research, using co-innovation principles.Community of Practice have adopted and implemented Good Practice guidelines. Implications for social licence across and within value chains accounted for in business practice and policy implementation.
13 In simple terms, we have two roads we can follow. ONE With public engagement/consultation, transparency, accountability, and INDEPENDENT OVERSIGHT, which leads to public trustOR one without trust and where we run the risk of repeating history and our mistakes.THANK YOUTim Ryan, 2014
14 Final thoughts (not so crazy ideas) Social acceptance?
15 Our collaborators & partners Dr Justine LaceyDr Aysha FlemingDr Libby PinkardProfessor Libby LesterDr Katharina RuckstuhlTracy WilliamsSuzanne TraffordDr Juan MongeDr Richard YaoDr Carel BezuidenhoutSandra VelardeKaren Bayne