Speaking Social Licence In The Senate

On April 20, Alan Ross, a partner in BLG's Calgary office, was invited to offer his insight to the Senate of Canada's Transport and Communications Committee on their ongoing study of the transport of crude oil in Canada. 

At its essence, social licence is the demand on, and expectations for, business enterprise that emerges from neighbourhoods, environmental groups, First Nations, communities, and other members of the surrounding civil society. It is not a literal licensing arrangement, but a "metaphor to encapsulate values, activities and ideals which companies must espouse within society to ensure successful operation."

Social licence issues have become part of any sophisticated corporate risk management strategy. In sectors with highly visible business activities, long term horizons, high exposure to global markets, or a wide range of stakeholders keen to influence the business, the need for a social licence to operate is even more important.