Many companies now recognize the importance of a social license to operate for their business sustainability; nevertheless, efforts to obtain this license are far from simple and present unique challenges. To overcome these barriers, companies must enhance their conceptual understanding while formulating appropriate strengthening strategies. The implementation of a social license to operate model, supported by a systematic framework, a continuous improvement cycle, and seamless integration into internal business management, will be highly beneficial.
This study employs a mixed-methods design, comprehensively integrating quantitative and qualitative approaches. To meet industry needs, the researchers developed a social license to operate framework model through case studies of three gas and petrochemical companies in Bontang City, East Kalimantan Province, Indonesia.
This framework model formulates industrial best practices, which are subsequently combined with strategic principles from the United Nations Global Compact Management Model and ISO 14001 Environmental Management System Standard. Field testing demonstrates that this framework model not only enhances the companies' social performance but can also be harmoniously integrated into existing corporate governance without requiring changes to the organizational structure or additional resources.