Social licence has changed. It is time to build trust with society using the tools of today
Amber Johnston-Billings A D , Louise Pogmore B and Mike Kaiser CA KPMG Perth.
B KPMG Sydney.
C KPMG Brisbane.
D Corresponding author. Email: ajbillings@kpmg.com.au
The APPEA Journal 59(2) 615-618 https://doi.org/10.1071/AJ18169
Accepted: 12 March 2019 Published: 17 June 2019
Abstract
International oil and gas companies have poured significant resources into building social licence since the 1990s. Despite this extensive effort at a local community level adjacent to operations, social licence has not been consistently gained and broad-based community trust in the industry is lacking. This paper argues that social licence has not been achieved globally, because oil and gas companies have failed to respond directly and appropriately to the concerns of all stakeholders. We argue that while international oil and gas companies have largely been successful in achieving and communicating the benefits they bring at a local level, in terms of royalties, local community investment, jobs and even in environmental credentials, they have not achieved social licence because it is no longer granted by only local communities. It extends to a potentially more powerful group of largely urban dwelling broader society, enabled by technology, especially social media. A new way of communicating and operating is required if oil and gas companies want to avoid the loss of social licence in future. This article contends three distinct opportunities to strengthen social licence in today’s context:
1. Understand and use social media to proactively address the concerns of all of your stakeholders. This includes responding to societal and global issues, which no longer centre on the ‘jobs, taxes and philanthropy’ dialogue that has been the mainstay of oil and gas industry communications;
2. Stress the role gas has as an enabler of renewable energy development and penetration; and
3. Review your investment strategy in light of the scientific reality of climate change. To gain social licence in future, action will be required to follow the lead of some fossil fuel majors who have already moved to build a new world, decarbonised portfolio of the future.
Key words: communication, climate change, social media, stakeholders, technology.
Amber Johnston-Billings worked at the United Nations, supporting sub-national governments in Africa develop green economies and responding to climate change, as well as in natural resource governance. Amber moved to the Head of Sustainability and Reporting at South32, where she led the mining company response on human rights, climate change, transparency and reporting. Now a Director at KPMG, Amber helps many companies strategically respond to sustainability issues, including setting governance and policy frameworks, responding to climate change and in building trust (social licence). |
Louise Pogmore has over 20 years of experience in marketing communications. Most recently, she was managing partner for One Green Bean, one of Australia’s leading PR and social media agencies. Louise currently leads KPMG’s Social Media Advisory practice, a dedicated team focused on providing independent social media counsel that enables clients to leverage social media as both a communications and an insights channel, while ensuring they are mitigating risk. KPMG’s Social Media Advisory practice analyses live, unstructured social media data and clears out the white noise – helping clients uncover the optimal social signals that can help them make more informed decisions, and drive better business outcomes. Louise currently works with a range of oil, gas and mining companies, helping clients uncover the social signals, both at a national and at a community level, in order to mitigate risks and leverage opportunities to drive greater advocacy. |
Mike Kaiser is responsible for KPMG’s national Corporate Affairs Advisory service, assisting clients to achieve social licence, protect reputation and realise competitive advantage through issues management and proactive engagement with employees, governments, unions, communities, NGOs, shareholders, customers and the media. |
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