Social licensing in Major Resource Development Projects: Corporate Indigenous Relations, Indigenous Rights, and Responsible Resource Development in Canada

Siomonn Pulla was awarded funds from Social Sciences and Humanities Research Council of Canada for a research project examining Indigenous engagement in resource development in Canada.

This research built on a synthesis of existing research knowledge and knowledge gaps relating to “social licensing” and corporate-Indigenous relations and its role in supporting responsible resource development projects in Canada. It explored the nuanced intersection between Indigenous rights and corporate social responsibility as manifest via the ‘social licensing’ stage of Indigenous engagement processes in the natural resource sector in Canada.

This research examines how multiple sectors and jurisdictions collectively understand the term “Social Licence to Operate” (SLO) as it relates to Indigenous engagement and major resource development; how governance and regulatory contexts may shape the SLO stage of Indigenous engagement processes and outcomes; the roles and responsibilities of governments in managing or participating in the SLO stage of Indigenous engagement processes and outcomes; the role of the SLO stage of Indigenous Engagement in contributing to sustainable development within Indigenous communities; and ultimately tries to understand what aspects of SLO processes in the natural resource sector could inform broader efforts at Indigenous reconciliation in Canada.

This research also engaged with the nuanced and messy intersections between environmental protection, Indigenous rights, the “honour of the Crown” and corporate social responsibility as manifest via the SLO. The call to action emerging from the research highlights a significant gap in current practices. It suggests that governments need to engage more deeply and meaningfully with Indigenous communities, aligning with the principles embodied by the Untied Nation’s Declaration on the Rights of Indigenous Peoples (UNDRIP) and its associated concept of Free Prior and Informed Consent (FPIC). One of the key elements of this call to cation is the proposal of an integrative model that harmonizes FPIC with the legal imperatives of Indigenous consultation and bridges the gap between these legal frameworks and the social intricacies of Indigenous engagement, offering a comprehensive approach that values the voices of Indigenous communities while aligning with the strategic interests of policymakers and industry leaders.

The research methodology for this project was qualitative, with a focus on using socio-historical and contemporary case study methodologies to unpack the highly interconnected complex contexts underlying the notion of SLO and Indigenous engagement. These methodologies helped to develop a nuanced analysis of the foundations of these contexts and how they are unfolding through tangible, real-world processes. Used as a guiding theoretical paradigm throughout this research, the concept of “Two-Eyed Seeing” ensured that Indigenous perspectives on social license engagement processes were valued equally with contemporary models and approaches to Indigenous engagement and corporate social responsibility. Co-cultural theory also provided a foundation to intervene in these polarized discourses by examining the “social licencing” aspect of resource development as an empowering process across sectors and jurisdictions. Moving beyond the discourse on corporate social responsibility, this research also paid particular attention to unravelling how these “social licensing” engagement processes are honouring Indigenous rights, experiences and aspirations towards development, and ultimately providing an opportunity for positive engagement between Indigenous and non-Indigenous Canadians.