Firms should attempt to maximise profits, but if shareholders want it, there’s no reason why they can’t have other goals.
The concept of a social licence is real, but proved too much for the Australian Securities Exchange.
The reality is that companies are at risk without a social licence to operate, so why shy away from the term?
A breakthrough resolution on Rio Tinto’s climate stance has received a strong vote at the company’s AGM.
AAP Image/Andy Brownbill
The shareholder resolution on climate change at Rio Tinto’s AGM is another indication of how much investor culture is tilting towards demanding that companies take a responsible climate stance.
Peter Powell / EPA
Governments and energy firms will find it hard to generate the necessary public acceptance for such a controversial technology.
And if you wait too long to survey a community, it can end up being too be too late to turn the tide of opinion.
‘Social licence to operate’ is a term describing how much community support a project or company has. As the Northern Rivers CSG experience shows, failing to get it can have costly impacts for firms.
Horse racing is enjoyed by many people, employs thousands of people but there are some concerns over the welfare of the horses.
Horse racing is enjoyed by millions of people but there are others who have concerns over animal welfare. A social license to operate may help keep all sides happy.
Protesters rally against coal seam gas in Melbourne, February 2016.
AAP Image/Caroline Zielinski
The federal government seems keen to usher in a new boom in onshore gas production. But gas firms will need to tread carefully, as past experience in Queensland’s fracking heartland shows.
Coal seam gas developments in Queensland near Chinchilla in 2013.
AAP Image/Dave Hunt
The latest survey of residents in coal seam gas regions reveals continuing lukewarm attitudes towards the industry.
Social Licences are seen as being earned by mining companies from the communities they operate in.
The concept of a ‘social licence to operate’ (SLO) is not new. It has been used widely in the mining and minerals industry for some 15 years where it has generally described the informal acceptance or…