Mining in Emerging Markets: Community Relations and the Social License to Operate
摘要
Local communities have become increasingly influential in determining the operating conditions of multinational mining firms, particularly in emerging markets where formal governance is uneven. To understand how firms navigate these challenges, we draw on the social license to operate (SLO) concept to examine how SLO strategies shape company–community relations and how firms design and sustain SLOs under institutional complexity. Using comparative case studies of three large mines in Botswana, Indonesia, and Peru, we find that deeper, participatory SLO strategies substantially reduce conflict. However, these outcomes depend on contextual factors: state capability, government part ownership of the mine, and the size and ethnic composition of the surrounding community. Mines embedded in high-capability states, with partial government ownership and smaller, more homogeneous communities, demonstrate more durable SLOs. Our analysis also shows that SLOs and corporate social responsibility (CSR) are distinct ideas. While CSR builds broad reputational legitimacy, only SLOs directly reduce community-level conflict through sustained local engagement. These findings contribute to international business research by highlighting the contextual conditions under which SLO strategies are most effective and by clarifying how firms secure legitimacy in institutionally complex settings.