Earning a social license to operate: Perspectives of mining communities in Ghana

Abstract

The granting of a social license to operate has proved fundamental in safeguarding the operations, investments and reputation of mining companies. Literature provides insights into the concept of Social License and what companies can do to secure it. However, case studies that shed light on how a social license can be obtained and maintained from the perspectives of mining communities remain limited. To address the gap in the literature, this study focused on the viewpoints of mining communities in Ghana as a point of departure for investigating how a multinational mining company gained and is maintaining its social license to operate. The results of the study highlight the limited effect of social development interventions on securing a social license and show that multi-targeted company strategies at different stages of the mine operation influence perceptions of communities. Specifically, this research reveals that a company’s track record, prompt payment of compensation and participatory processes of social development are contributory factors in securing a social license to operate. Finally, the study also reveals the fragile nature of the social license due to the growing disillusionment of some community stakeholders.