Nowadays, business projects have a direct impact on territories and local communities. Meeting legal requirements is no longer enough — true legitimacy to operate is granted by people and communities.
This is why the Social License to Operate (SLO) has become a requirement for any company that wants to grow sustainably. But what does a Social License to Operate really mean, and why does your company need it to secure its future?
What is a Social License to Operate?
The Social License to Operate is neither a legal document nor an official certification. It refers to the level of acceptance and support a company receives from stakeholders in the areas where it operates. It is intangible and can change over time, as it depends on how communities perceive the company and its project.
In other words, it is a relationship of trust and legitimacy that enables companies to move forward with their projects without blockages or social conflicts.
The three Pillars of a Social License to Operate
Social Legitimacy
The SLO begins with respect for the norms and values of the territory. Every community has its own rules, both formal (legal) and informal (social and cultural). Understanding and acting in line with them is the foundation for being accepted. When companies clearly communicate about their projects, listen, and respond to local concerns, they start building that social legitimacy.
Credibility
Communication alone is not enough — the key is to deliver on what is promised. Credibility is earned when information is transparent, consistent, and backed by action. Establishing clear commitments and responsibilities helps manage expectations and prevents the company from being perceived as unreliable.
Trust
Trust is not achieved overnight; it is built through shared experiences. When companies collaborate with communities in real projects, beyond purely transactional relationships, they create strong and lasting bonds. This trust represents the highest level of the SLO and is what ensures long-term sustainability.
Why is it important for your company?
Builds Trust and a Positive Reputation
A company that acts responsibly and transparently is far more likely to gain the support of the communities in which it operates.
At Volies, we have supported companies such as Amazon and Repsol in processes of active listening and stakeholder dialogue to strengthen their reputation and social trust.
Facilitates Permits and Strategic Partnerships
Having a Social License to Operate opens doors to regulatory approvals and attracts strategic partners who are looking to collaborate with sustainable companies.
Reduces Risks and Conflicts
Companies without a strong Social License to Operate may face social protests, boycotts, or even the loss of clients. Preventing these risks saves both economic and reputational costs.
Aligns with the Sustainable Development Goals (SDGs)
Adopting responsible practices helps ensure that your company is aligned with the 2030 Agenda, offering an additional value proposition for your business.
How can you obtain a Social License to Operate?
The Social License to Operate is not obtained through a simple administrative process, but by building a relationship of trust through consistent actions over time. To achieve this, your company needs a structured approach that combines listening, dialogue, and genuine commitment to communities.
At Volies, we guide companies along this path through:
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An initial diagnosis, analyzing the political, social, environmental, and economic context to identify opportunities and potential risks.
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The identification of key actors, mapping and prioritizing stakeholders according to their influence and expectations.
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Community engagement strategies and co-creation processes.
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Authentic communication, with clear, transparent narratives grounded in real facts.
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Impact measurement, continuous monitoring, and improvement.
In today’s context, the Social License to Operate is no longer optional — it is a necessity. Your company must not only comply with laws and regulations, but also meet society’s expectations.
In a competitive environment, obtaining and maintaining this license will allow you to grow, innovate, and differentiate yourself, ensuring a sustainable future for your organization.
Do you want to know how your company can achieve its Social License to Operate? At Volies, we help you build trust, positive impact, and a solid reputation.
