Social Licence to Operate

The SLO model was formalised in 2011. This model is designed to measure the level of acceptance of a project or an activity of a company by local communities. Four levels of acceptance must be passed before these communities authorize the company to act; these levels ranging from economic legitimacy to institutionalized trust through socio-political legitimacy and interactional trust.

At the outset, the model was exclusively used in the mining industry. Since then, it has gradually evolved beyond that industry, making its mark in other sectors where projects or activities of companies are also seen to meet with controversy.

This rising popularity is easily explained, as obtaining an SLO is essential to reduce the risk of public criticism, social conflict, and, in general, damage to a company’s integrity, financial health and reputation.