Expectations of businesses are changing and consumers are increasingly looking to offer businesses as social licence to operate. Indie creative comms agency Horizon Communication Group recently gathered industry leaders to discuss the topic. Here, Cathy Osmond, Horizon’ associate director, media and content, offers her recollections.
Social licence has become the buzz term of the business world. Once primarily associated with industries such as energy and mining, the notion of social licence has expanded to include a wide array of sectors, from banking and government to beauty and fashion. Companies are increasingly being held accountable not just for adhering to regulations but for operating in a way that aligns with the broader expectations of society. This shift in focus has redefined how businesses approach their relationships with consumers, communities and stakeholders.
While Horizon Communication Group has always worked at the intersection of reputation management, transparency and authenticity, the rise of social licence has brought these elements into sharper focus. Recognising the growing importance of social licence, our sustainability division greenHorizon recently hosted a closed-door session that brought together a diverse range of key stakeholders — including representatives from corporates, government, brands and academia — to explore what social licence truly means and how businesses can maintain it at a time when transparency is demanded. Key speakers included Director of Insights and Research at Isentia + Pulsar, Ngaire Crawford; General Manager at Cox Inall Ridgeway, Yatu Widders-Hunt; and Head of Sustainability at greenHorizon, Alice Johnson.
A fresh approach to engagement
A central theme that emerged from the session was the importance of co-design as a critical factor in maintaining a social licence. Historically, businesses tended to operate in a top-down manner, with decisions being made by corporations or government entities without substantial input from the communities most affected by those decisions. The new model calls for a collaborative approach in which stakeholders — especially the communities affected by business operations — are actively involved in shaping projects and initiatives from the outset. From a First Nations perspective, said Yatu-Widders Hunt, “We might even call social licence something different. We might call it cultural licence.”
New conversations require new platforms
The event also underscored the significant role of social media, particularly platforms such as TikTok, in shaping the public’s perception of social licence. With the rise of these platforms, consumers and communities now have the power to hold companies accountable for their actions in real time. “A single viral TikTok video can expose corporate missteps, amplify grassroots movements, or spark conversations on important issues like sustainability and ethical business practices,” said Ngaire Crawford. “For companies, this means that social media has become an essential tool for not only marketing and communication but also for listening to and engaging with stakeholders — and overall, for social licence.”
The speed and power of social media demand that businesses engage authentically and transparently. No longer can companies control the narrative through carefully crafted public relations campaigns alone. Social media platforms provide a space for real-time dialogue, where customers, employees and the wider public can directly engage with businesses.
Embracing different voices
The question of who audiences trust — or, increasingly, mistrust — to deliver key messages emerged as a key theme in the event discussion. Trust is the bedrock of social licence, yet research consistently shows that communities are turning away from big business and governments as trusted sources of information. This is particularly the case on divisive topics such as the energy transition and renewable energy infrastructure projects.
Alice Johnson said the new trust landscape meant communicators needed to embrace new voices to secure authentic buy-in.
“For many of our clients in this space, we have needed a real mindset shift about who we engage to deliver campaign messages,” said Johnson. “Our go-to spokespeople of old – the CEO or the portfolio minister – might still catch a commissioning editor’s attention, but they won’t ultimately foster the end audience trust that’s so essential to building long-term social licence. Instead, communicators need to embrace the spokespeople and ambassadors in the often hyper-local and targeted networks our audiences operate in, whether that’s a local engineer, a TAFE teacher or often a friend or family member.”
The founder of Horizon, Liz McLaughlin said: “It’s clear that businesses across all sectors must adapt their strategies to prioritise transparency, fairness and meaningful engagement with their communities.”
“It’s wonderful to see industry come together to share insights and discuss case studies in such a meaningful way and challenge our thinking around concepts such as social licence,” added Horizon’s Managing Director, Lisa Portolan.
Horizon will hold quarterly sessions on key communications-related topics affecting business, not-for-profits and government with the aim of encouraging cross-discipline engagement and information sharing.
