What is also referred to as a "social license to operate"?

The term "social license to operate" refers to the ongoing approval and acceptance of a company's activities by its stakeholders, which include local communities, employees, and other interested parties. It denotes the informal and unwritten agreements that a company gains from the public and is crucial for operations, especially in industries that interact closely with communities and natural resources, such as mining, energy, and agriculture.

Choosing "license to operate" accurately captures the essence of the term as it suggests formal approval to conduct business. However, the social aspect highlights the importance of community relations and social responsibility, indicating that compliance and good practices contribute to a company’s ability to maintain its operational status.

The other responses do not encapsulate the idea of community and social acceptance, lacking the nuance of stakeholder engagement integral to the concept of a social license. "Approved to operate" and "Allowed to operate" tend to imply a more regulatory or governmental perspective, while "Social to operate" is not a recognized term that reflects the relationship between businesses and the communities they affect.