Posts Tagged ‘social license’

Naumai

Last month we looked at some views on why NZ tourism needs to develop it’s social license to operate.

As previously noted, there are many definitions of how to obtain and maintain a  social license to operate. At the micro level it’s about the concept of  a project achieving ongoing approval of the local community and other stakeholders. That may be formal through processes such as the RMA or the DOC concession process or informal such as access agreements.

At the macro level it is how industry sectors work at a national level along similar lines, and particularly how they influence government.

The opportunity to achieve a social license to operate can be seen as an overall outcome. There is no rule book which defines the process, a method, tools or ways to achieve such an outcome.That is both an advantage and disadvantage.

Gavin Shepherd in the Te Awamutu Courier argues, that for the farming sector, “long-term profits on farm are more linked to these social perceptions than efficiency in production or scale at all costs”.

Dan Ormond, formerly partner at Ideas Shop, notes that, along with knowledge of who your market is and its size, “all aspects of engaging with stakeholders and developing sustainable business practices need to be communicated well in order to keep your business’s social license to operate”.

So how do we achieve such a license?

There seems to be general agreement on the following processes:

  • identify key stakeholders (people affected by the project/sector) and continue to review these
  • gain social acceptance based around legal, social,and cultural norms – both formal and informal
  • gain credibility based on accurate and transparent information and importantly delivering on promises and representations that have been given
  • gain trust from the local or national community based on being accountable, collaborative and sharing experiences
  • deliver extensive and wide ranging communications across all channels that integrate all of the above.

In terms of a tourism perspective we note Taleb Rifai, Secretary-General, World Tourism Organization (UNWTO) comments that “globally tourism is today the 3rd largest export industry in the world after chemicals and fuels. Last year alone, 1.235 million travellers crossed international borders in one single year. By 2030, this 1.2 billion will become 1.8 billion”. Globally tourism has sustainable development as a key plank in all its 5 pillars:

  1. Economic: yielding inclusive growth;
  2. Social: bringing decent jobs and empowering communities;
  3. Environmental: preserving and enriching the environment and addressing climate change;
  4. Cultural: celebrating and preserving diversity, identity, and tangible and intangible culture, and
  5. Peace: as an essential prerequisite for development and progress.

As an aside the UN General Assembly declared 2017 as the International Year of Sustainable Tourism for Development. Who knew?

In NZ tourism faces some political issues and community fears. As Professor Chris Ryan noted immediately after the election, all major parties played lip service to developing integrated tourism policy. This remains an ongoing challenge for the industry but should not deter Tourism Aotearoa  Tourism New Zealand local Regional Tourism Organizations and tourism operators doing more in this space.

Regular snapshots of how NZ communities view tourism show a trend towards less acceptance at the current and particularly the projected levels of international tourism.

In summary, achieving and maintaining a social license to operate is a dynamic, long-term, holistic and vitally important process for both key industry sectors and individual operators. The difference being primarily the scale of the input.

As social scientist Kate Brooks states “Any industry, that operates, particularly using common resources like water or land, forests, has to concern themselves with social license to operate issues. It’s like somebody saying I want to come in and use your front yard (for my own profit).”

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Cruise ship passengers      Whangara Marae

 

 

 

 

NZx – August 22nd: A social license to operate

Monday, August 21, 2017
posted by malcolm

Naumai

Continued growth in New Zealand tourism is raising questions over it’s social license to operate. As Tourism Aotearoa states ” Tourism will only achieve our Tourism 2025 aspirational goal if we maintain and enhance our social licence to operate. We are encouraging tourism operators to recognise the importance of growing their businesses in a way which balances the economic, social and environmental impacts.”

There is no widely accepted definition of a social license to operate (SLO). However a recent paper by the Sustainable Business Council suggests key attributes include:

a.  a measure of confidence and trust society has in business to behave in a legitimate, transparent, accountable and socially acceptable way;
b. it does not derive from a need for legal or regulatory compliance, instead is deemed to be the foundation for enhancing legitimacy and acquiring future     operational certainty, realising opportunities and lowering risk for the business;
c. an unwritten contract between companies and society for companies to acquire acceptance or approval of their business operations;
d. the terms of a SLO are often project or location specific. Although society as a whole ‘issues’ the SLO, it is usually local communities who are the ‘key arbiter’ of     the terms of the SLO due to their proximity to the company’s activities and associated effects;
 
Tourism New Zealand acknowledges the visitor experience “is affected by the New Zealand community’s own view on tourism – the more the community can understand the benefit of a strong tourism sector, the more likely it is to take a positive view on tourism growth. New Zealand is a long-haul, premium-priced destination with a strong, niche appeal in most overseas markets. We rely on positive brand association and word of mouth to make the most of our unique strengths as a destination. Poor visitor experiences will make it harder to compete with other tourism boards for targeted customers.
 
As Chrisopher Luxton, CEO Air New Zealand, recently stated ” The biggest issue the industry faces is its social license to operate.Tourism consumes infrastructure such as transport, accommodation, national parks, and puts particular pressure on places where there are low numbers of residents.  If visitors came to the country and thought it was clean but “broken down” and unable to handle its popularity then they might go home wishing they had gone to Dubrovnik in Croatia to see Game of Thrones sites. “That’s not a place we’d want to be. “If we don’t manage the social and the environmental pieces, the social license to operate as an industry is lost because, frankly, socially Kiwis sit there and say, ‘Yeah, I’m getting jacked off with all these tourists coming through the country and it’s irritating’.”
 
Of course tourism is not the only sector to be involved in this discussion. As Tourism NZ board member Raewyn Idoine says public perceptions of tourism are at a key point and action is needed now so the industry does not go the way of Fonterra. ‘‘Everybody loved farmers until they started polluting streams and rivers and making butter cost too much,’’ she says.  Now Fonterra is funding milk in schools and making expensive PR campaigns with Richie McCaw to improve their image.’’
 
The issues are clear and the current election campaign lightly touches on some of these issues.  At the time of writing no one party has really addressed the potential answers.
 
We will discuss some options to manage tourism’s social license to operate in next month’s post.

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Just what is tourism’s social license to operate in NZ?