Trust Is the New Permit: What Every Business Must Know About the Social License to Operate

In the evolving landscape of business operations—especially in fragile areas—the difference between success and failure often hinges on one invisible, yet critical factor: the Social License to Operate (SLO).

At VOI, we don’t treat this as a buzzword or a checkbox exercise. Instead, we see it as the cornerstone of ethical impact, community resilience, and de-risked private investment. But what is a social license and how can it be practically applied to reduce tensions and co-create sustainable futures?

The Origins of the Social License to Operate

The term SLO emerged in the 1990s in the mining and extractive industries, where companies discovered that legal compliance wasn’t enough. Communities that felt unheard, disrespected or harmed began organizing, protesting, and halting multi-million-dollar operations—despite all official permits being in place.

That gap between what's legal and what's legitimate birthed the idea of a "license" granted not by governments, but by communities themselves. One not written on paper, but embodied in trust, acceptance, and social approval.

What Does It Really Mean?

A SLO is the ongoing acceptance and approval of a project or company by the local community and stakeholders. It is dynamic, earned over time, and must be continually renewed through genuine engagement.

More than goodwill, the SLO reflects:

Trust: Do communities believe businesses will act in their best interest?

Legitimacy: Is the business seen as operating fairly and with purpose?

Credibility: Does the business deliver on its promises?

Consent: Is there broad support for the project?

Without these, businesses—even well-intentioned ones—can face costly disruptions or even collapse.

Why It’s Essential in Fragile Contexts

In fragile areas, the stakes are even higher. Tensions are latent. Trust is scarce. Businesses entering these contexts often find themselves unintentionally exacerbating inter-community disputes (e.g., over land, resources, or employment) or becoming lightning rods for historical grievances.

That’s where VOI’s methodology steps in. Our validated approach is designed not only to deliver impact but to proactively manage and reduce the risks that stem from community discontent.

VOI’s Approach: Turning SLO into a Measurable Plan

Unlike traditional CSR programs or top-down engagement strategies, our work begins from the ground up. We don’t assume we know what a “positive impact” looks like—we co-create that definition with the people who live there.

Our core principles:

• Community-sourced indicators: Outcomes are not defined by the business, but by communities themselves.

• Neutral facilitation: In fragile areas, impartiality is vital. Our process prevents business actors from becoming entangled in local disputes.

• Long-term engagement plans: Engagement doesn’t stop after a consultation. We build dynamic roadmaps that evolve with the project lifecycle.

• Data for trust: All engagement efforts are transparently recorded, reported, and revisited—transforming promises into accountability.

  
  

This model doesn’t just help companies avoid backlash—it actively builds social capital, fosters inter-community dialogue, and makes projects resilient in the face of political, social, or economic shocks.

Practical Insights for Businesses

If you're a company looking to invest or operate in a sensitive area, here’s what earning your Social License requires:

1. Start Early

Waiting until conflict erupts is too late. Engagement must begin before the first investment is made—ideally, as part of feasibility planning.

2. Listen More Than You Speak

Don’t enter with solutions. Enter with questions. What do people want? What are their fears? Their hopes?

3. Map the Invisible

Fragile areas often have hidden power dynamics. VOI helps identify informal leaders, marginalized groups, and unspoken grievances.

4. Plan for Change

Communities evolve. Tensions shift. Indicators must be tracked and updated, not fixed in stone.

5. Make Impact Measurable—On Their Terms

Our framework supports businesses in embedding community-defined success metrics into their project KPIs. This ensures that when a business says, “we made a positive impact,” it reflects the voice of the people.

Reimagining Profit and Peace

The SLO is not a soft issue—it’s a strategic asset. In a world where ESG performance, reputation, and resilience are more valuable than ever, trust is currency.

At VOI, we don’t just believe in earning that trust—we build the systems to sustain it. In places where tension meets opportunity, our methodology bridges business goals with community peacebuilding, delivering not just projects, but legacies.

Want to learn how VOI can help your company secure its social license to operate in high-risk or post-conflict areas? Get in touch—because impact without legitimacy is risk, but impact with trust is transformation.