In the shadows of social licence to operate: Untold investment grievances in Latin America

This article critically examines the usability of the concept of ‘social licence to operate’ (SLO) in the Latin American context as an indicator of the social acceptability granted by local stakeholders to multinational forestry companies. We identify four potential problems (risks of co-optation, structural power imbalances, conflicting worldviews, and the silencing effects of global certification schemes) that emerge when the current practice and literature on SLO is implemented in the context of forestry operations in Global South's rural areas, commonly marked by dynamic and contentious corporate-community relations. Based on empirical material from local communities affected by industrial tree plantations (ITPs) in a setting claimed to have an absence of conflicts (Uruguay) and another where visible conflicts have been present (Chile), we then ask: What does SLO mean to those it is supposed to represent the most, the local communities affected by industrial forestry? The findings illustrate that caution is necessary prior to claiming that a company, investment, or industry has achieved an all-encompassing SLO at the local level. Instead, to understand the dynamic and contentious corporate-community relations we argue for a more nuanced approach to how locals engage with different economic alternatives based on their own place-based capacity to sustain and reproduce life in community.