InsightSocial licence: steering project success

Over the past 2 decades societal expectations have changed and, with them, the way we deliver projects. Today, communities rightly expect to be actively engaged, heard, and respected throughout every stage of a project, from planning through to implementation. This makes sense; after all, how can a project meet community needs without engaging with the people who have those needs?

Ignoring community expectations can swiftly lead to blown out project budgets and timelines, and tarnished reputations for project owners and their delivery partners. In worst-case scenarios, a disgruntled community can bring a project – and the objectives of the organisations behind them – to an abrupt halt. In these instances, the project or project owner loses, or never achieves, its ‘social licence’ to operate.

Here, TSA Riley’s Andrea Murphy and Gary Neave explore the interplay between social licence and stakeholder engagement, highlighting their importance in fostering sustainable projects and business practices.

 

Licence to thrive: unpacking the concept of social licence

Social licence refers to the acceptance and approval granted by a community to an organisation to operate in a manner that aligns with social expectations. In terms of project delivery, social licence is the need for organisations to go beyond legal and regulatory requirements to understand, plan for, and meet (or exceed) community expectations. Maintaining social licence is critical to mitigating socio-political risks, ensuring project advancement, and securing ongoing operations.

Much like a driving licence, social licence is not automatically granted and requires ongoing effort to maintain. Social licence is built on trust, which accumulates gradually and can vanish in an instant. Transparency, accountability, and genuine commitment to addressing stakeholder concerns during project planning and execution are essential for earning and maintaining this trust.

The benefits of achieving social licence for organisations and projects can’t be overstated. They include:

• Positive project outcomes, with support from stakeholders facilitating smoother operations, reducing delays, and minimising disruptions from community opposition.
• Enhanced reputation, with organisations being seen as responsible and ethical, thereby building market collateral.
• Long-term viability and success for future projects, with organisations building resilient relationships by fostering community goodwill.
• And, most importantly, delivering a truly transformational built asset that benefits the community it serves.

 

Passing the social licence test: principles of transparency and accountability

Understanding how social licence is gained and maintained is the key to managing project risk consistently, through every stage of the project lifecycle. Transparency and accountability are fundamental principles of effective stakeholder engagement and building social licence.

Organisations that are transparent about their operations, challenges, and decision-making processes are more likely to gain the trust of the stakeholders and communities they impact.

Transparency can be achieved through:

• planned and frequent communication
• the use of reciprocal communication channels
• the proactive and clear and accessible disclosure of information.

Accountability is about organisations understanding and taking responsibility for the impacts of their actions. This means they:

• acknowledge their mistakes
• rectify any harm they cause
• plan and implement measures to prevent or mitigate future issues.

It’s best that organisations consider accountability and transparency measures in the earliest stages of the project lifecycle. By doing so, they signal to the community that they are serious about gaining and maintaining their social licence by inviting them on the project journey.

 

Changing gears: transparency as a project asset

The path to project success hinges heavily on social licence. However, many project proponents hesitate to embrace high levels of transparency, often viewing it as a project risk. While this perspective can be valid—particularly if stakeholder engagement is poorly executed—it’s essential to clarify these risks through careful consideration.

We must ask: what poses a greater threat to a project? Is it openly disclosing benefits and challenges, with appropriate contextualisation? Or is it a decision to keep potential issues under wraps? If a community learns of project implications from external sources, no level of stakeholder engagement can stop the immediate erosion of community trust.

Ultimately, the risks associated with transparency pale in comparison to the consequences of losing, or failing to achieve, social licence. This underscores the critical need to integrate social licence considerations from the project’s inception, alongside traditional risk assessments, to establish a foundation of community trust and support that fosters long-term success. Reframing transparency as a project opportunity, rather than a risk, can bring about rewards for everyone invested in the outcome.

 

Behind the wheel: A TSA Riley case study

TSA Riley’s team witnessed the power of social licence firsthand during a project involving the discovery of trichloroethene in groundwater. The project was located in a residential suburb in the southern suburbs of Adelaide, adjacent to long-term industrial activity. Media headlines screamed ‘scandal,’ multiple government departments came under scrutiny, and emerging ‘science’ heightened community misconceptions and fear. The project risked losing its social licence as local residents considered a class-action lawsuit over health concerns and potential impacts on property values.

Engaged to provide strategic advisory, community engagement, and communications leadership services, TSA Riley’s team set about mending the rift. They conducted extensive engagement with government agencies at an executive level and established an Environmental Management team to oversee the project. The team facilitated community workshops and maintained a consistent on-the-ground presence to address key issues related to health, relocation, and compensation. They translated complex scientific information into clear, everyday language, ensuring communication materials were accessible and understandable.

This concerted approach alleviated concerns and actively involved the community in the process, fostering a more positive and collaborative environment and effectively shifting community sentiment.

After nearly a month of daily print media headlines, and just one week after the team started working on the ground, the issue was being actively managed and media interest dropped away. The community were supported with resources and information, and social licence was ultimately gained – retrospectively in this case.

 

Roadmap to success; proactive steps for securing social licence

Delivering social licence retrospectively can unlock a stalled project, but it requires hard work. It generally involves ‘outrage’ management to regain the trust and goodwill of the affected community.

Assessing risk and planning for social licence at the start of a project—whether it’s physical infrastructure or a policy change—helps avoid costly and resource-intensive delays. These delays can arise from protests, approval obstructions, or even legal injunctions.

The cost of short delays, both in time and money, often exceeds the investment needed to establish social licence early. Many believe it won’t happen to them; some don’t even consider the possibility. But it happens, again and again.

For help in gaining and maintaining social licence and creating value for both your organisation and the communities your projects impact, please reach out. TSA Riley can support your project, your delivery partners, and of course, the community.