The Social License to Operate as a Tool to Promote Sustainability and Social Responsibility in Mining Industry: Case Study of Parauapebas and Canaã dos Carajás (Pará, Brazil)

Abstract

AbstractThis research analyzed the Social License to Operate (SLO) of mining industry in the two main Brazilian mining municipalities: Parauapebas and Canaã dos Carajás (Pará State) in 2020. Despite its economic importance in Brazil, mining industry caused social and environmental impacts such as a catastrophe in 2019, which damaged the reputation of the industry with high death tolls. The SLO reflects social perceptions regarding businesses, but it can be used either as a tool to promote social resignation and alienation, or as a management tool to address Corporate Social Responsibility issues, empowering local communities. This study aims at investigating what strengthens and harms the SLO in such important mining municipalities. The SLO level was identified, and multivariate techniques investigated the relationships between the following factors, and their influence on the license: procedural fairness, company-community communications, improvements on social infrastructure, impacts on environment and economy, governance and trust in industry. The only previous study that quantitatively assessed the SLO in Brazil focused just in Canaã dos Carajás in 2016. This research is the first to quantitatively and qualitatively analyze the SLO in more than one Brazilian municipality at once, guiding decision-makers on improving sustainability and social responsibility in Brazilian mining industry.KeywordsSocial license to operateMiningBrazilCorporate social responsibilitySustainability