Public relations builds and sustains the relationships we need to keep our licence to operate - but what is a 'licence to operate' and why should your organisation care? This three minute video and three minute read gives you the reasons why your licence to operate should be at the forefront of your thinking - and why you need public relations to help you keep it.
Unlike a statutory licence, granted by an authority - for example, government, association, academic institution - a 'social' licence to operate is the ongoing acceptance of an activity undertaken by an organisation by the community in which it operates. It is the permission we give to others to do something, make something, sell something or run something. Communities consist of many stakeholders - for example, employees, customers and suppliers in a commercial organisation -or voters, ratepayers, politicians and service providers in a public sector organisation. How the community and the organisation relate to each other will dictate the strength of the licence to operate.
Imagine a manufacturer of goods. Customers want to know workers are not exploited, conditions are good and pay is fair. Should exploitation take place, customers will not buy the product. No sales means the licence to operate is withdrawn - not because of quality or price but because of organisational behaviour. The manufacturer would not be considered trustworthy, customers would be unsatisfied with the behaviour and any loyalty eroded. Add to that consequential reputational damage and the ability to conduct business becomes impossible.
Next, imagine a government. Over years, promises and policies put forward at the time of election remain unfulfilled. Voters have suffered economic and social hardship as a result. Jobs are few, houses are scarce, health care is negligible and everyone is disillusioned. Come the election, the sitting government is voted out, no longer legitimate and licence to operate withdrawn. Again, erosion of trust, satisfaction - even the loyalty and commitment of long established supporters - results in a relationship breakdown and no renewal of licence.
Without a good relationship between an organisation and its communities the licence to operate is eroded and eventually withdrawn. Sometimes by the community itself - for example no purchases or a withdrawal of labour - and sometimes by legislative default - for example the UK's recent sugar tax or today's announcement in New Zealand of plain packaging on cigarettes.
A licence to operate is nothing new or revolutionary. With its roots in the Ancient Greek concept of moral legitimacy, to the social contract theory of the 17th century philosopher Thomas Hobbes, last century saw further development of the principle in political, social and environmental thinking. The notion that we all do what we do only by the permission of others has gained further ground with the advent of mass digital engagement. Available technologies give voice to communities and empower them to force change, taking back those 'licences' should organisations fail to perform.
The New Zealand Sustainable Business Council produced an excellent paper on the 'Social Licence to Operate' which makes very interesting reading and one extract illustrates the concept well:
"Society’s confidence in business has been shaken. The global financial crisis, which saw whole economies teetering on the bridge of bankruptcy, a massive destruction of personal wealth and unemployment at historically high levels called into question the right of business to operate in such an apparently uncontrolled and unregulated manner. This loss in confidence in business gave rise to a number of public uprisings, the most prominent of these being the ‘occupy movement’. This movement gained momentum using social media to organise protests and communicate their view that large corporations and the global nancial system control the world in a way that disproportionately bene ts a minority (hence the slogan ‘we are the 99%’), undermines democracy and is inherently unstable. While this movement is seen by many as a radical movement, increasingly connected, informed and financially comfortable parts of our global society are now demanding to see greater ethics, accountability and transparency from the business community. The context in which business is operating in is also changing. Global consumers have greater expectations for the role companies should play in giving back to society."
So why do you need public relations to help you sort all this out? Because our business is organisational relationships. We identify the communities and stakeholders, assess expectations and perspectives, investigate organisational values, culture and behaviour and then develop and implement strategies that will help build and sustain the relationships in question. That involves communication, behaviour and understanding - and courage on our part to challenge that rambunctious CEO or council leader and tell them the culture has to change or the behaviour has to stop. It also means us scrutinising your data, poking about in the corners of your reputation to see where cracks in the relationships are forming, alerting you and providing you with a means to repair the damage. It also means that we will be involved with reporting on the organisation's community impact, its sustainability and contribution to society - and if you are skeptical on that score, I'd suggest a visit to the International Integrated Reporting Council (IIRC) to become familiar with what's ahead.
So if you were wondering why you might need public relations, now you know. You need to keep your licence to operate and we can help you build and sustain the relationships you need to do just that.
On the slaying of dragons and Brexit's headless chickens
In business, we have a wealth of information available to us on leadership. From Harvard to Oxford there are tomes filled with guidance designed to develop those in leadership positions. Yet here we are. Brexit vote complete and a whole country is now 'steered' by a coop of headless chickens.
At a time when true leadership is vital, the UK parliament is peopled with buffoons and xenophobes fighting like rats in a sack for power and position rather than turning their attention to their job of serving the country and the people they represent. Cameron's last act - putting everything into a holding pattern and neatly avoiding triggering Article 50 - was probably the only thing he could do the morning after the results came through.
Wouldn't it have been tremendous if, at that point, his colleagues turned their attention to the good of the people, rather than immersing themselves in the machinations of a leadership battle, leaving the populace facing the ineptitude of jumped-up journalist Johnson and the glacial Gove. As for the spectacle of Farage speaking at the EU Parliament - once again I had to step away from the keyboard for a while so as to not write in anger. His behaviour, demeanour and words were utterly shameful and, wittingly, unwittingly or simply half-wittedly, echoing an infamous phrase attributed to Adolf Hitler.
The 'Leave' campaign presented the UK with a dragon. The beast was supposedly responsible for all the ills of the country and the suffering of the people and, once slain, all would be well in the kingdom. Pens would be drawn at the ballot boxes. At a stroke a new day would dawn. The beast, though mythical, was slain. But there were no knights to rally the people. Instead, the dubious and incompetent squires bickered their way into new battles of their own making and there they remain, squabbling, self-serving and divisive, ripping out the heart and cutting off the head of the country they were - and are - supposed to serve.
There isn't a single leader among them. Not one capable of stepping up to the mark and healing the bitter division that this process has caused. And it is the division, hatred and prejudice that this process has created that truly breaks my heart because those are the things that will take the longest to heal - scars that will take decades to fade.
A leader needs many qualities - listening, empathy, understanding, foresight, courage, wisdom and tenacity to name but a few. In business, leaders are nurtured, trained and the best of them understand they must learn continuously. The headless chickens of the Westminster coups say much, know little and apparently care less.
St George, a Syrian immigrant born of Greek parents who ended up a Roman soldier, was named England's patron saint by King Edward III in 1327. A patron saint is named not because they come from the country that chooses them but because they embody the characteristics the kingdom wants to project to the outside world. On current form, those in charge in the UK - and I use the term 'in charge' loosely - should perhaps take a moment to look at the legends and behaviours of this quintessentially 'English' saint who also stands as a nominal spiritual guard over other countries in Europe. Perhaps then they might realise that the characteristics they are currently presenting to the British people and the outside world belittle and shame us all.
*Image - wikicommons - Mummers of St Albans enact St George and the Dragon