DIIS Impact

Social Licences to Operate: sustainable partnerships in extraction industries

Social contracts between mining and oil companies and communities benefit all

In mineral rich terrains in Africa, it is customary for multinational companies in the extraction industry to provide compensation to communities through corporate social responsibility (CSR) programmes with the aim of social and economic development.

Multinational mining companies should rather aim towards gaining 'social licences to operate' (SLO) as they are more beneficial to companies as well as communities. An SLO is gained when the mining operation holds an ongoing and broad approval by the community.

An SLO is established in partnership between the company and the community and ensures economic, social, cultural and environmental sustainability in the area affected by the mining operation. A vital part of this is including the communities in decision-making, using their knowldge of the local context and ensuring their livelihoods within or outside the mining industry.

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Social Licences to Operate Benefit both Companies and Communities
Partnerships in Africa's Extractive Industries
DIIS Impact, 2016:, 2016-04-18T02:00:00