ICAEW SE · Chapter 2 · Question 13 of 13
A mining company has the legal permits it needs, but local communities strongly oppose its new mine and have organised blockades. Which concept best describes what the company lacks?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A social licence to operate
Explanation
A social licence to operate is the ongoing acceptance of a company's activities by local communities and other stakeholders. It is not a legal document, so a company can have all permits yet still lack community support. Losing it can lead to delays, protests and reputational damage, showing how social sustainability affects business viability.
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