Arctic Yearbook 2014 - Page 530

530 Arctic Yearbook 2014 Table 1. Four factors constituting three levels of SLO (after Thomson & Boutilier 2011) (Williams & Walton, 2013: 9) Level and Label Description Role in Determining SLO Levels as Described in Thomson & Boutilier Pyramid Model 1. Economic legitimacy The perception that the If lacking, most stakeholders project/company offers a will withhold or withdraw the benefit to the perceiver SLO. If present, many will grant an acceptance level of SLO 2a. Socio-political legitimacy The perception that the project/company contributes to the wellbeing of the region, respects the local way of life, meets expectations about its role in society, and acts according to stakeholders’ views of fairness If lacking, approval level of SLO is less likely. If both this and interactional trust (2a & 2b) are lacking, approval level is rarely granted by any stakeholder 2b. Interactional trust The perception that the company and its management listens, responds, keeps promises, engages in mutual dialogue, and exhibits reciprocity in its interactions If lacking, approval level of SLO is less likely. If both this and socio-political legitimacy (2a & 2b) are lacking, approval level is rarely granted 3. Institutionalized trust The perception that relations between the stakeholders’ institutions (e.g., the community’s representative organizations) and the project/ company are based on an enduring regard for each other’s interests If lacking, psychological identification is unlikely. If lacking but both sociopolitical legitimacy and interactional trust are present (2a & 2b), most stakeholders will grant approval level of SLO The concept of an informal social license is “comfortably compatible with legal norms in the countries that operate under the principles of common law” (Thomson & Boutilier 2011: 1780). However, in the countries with legislatures operating under the principles of civil law (i.e. Finland, Russia, Norway, and Sweden) “the concept runs into difficulties” (ibid). The difficulties are related to the legal norms in these countries which constitute that only the official authorities can grant a license and, thus, many companies equate the license with formal permission to operate. The SLO concept as well as different aspects of its practical use attracted high interest among scholars in many countries during the last years, especially in Australia, Canada and Finland. Beside the authors we have already referred to, see, for example, Kokko et.al. 2014; Lacey et.al. Riabova & Didyk