Encroachment of Social Licence In Australia’s Trade and Investment

This article examines the concept of social licence from the perspective of Australia’s Trade and Investment. Social licence eludes specific definition while creating substantial compliance overhang for corporations and businesses in terms of meeting community expectations. The article uses the institutional theory to provide the conceptual foundation beneath the structuring of two original models (single-layered and dual-layered regulation) to explain the observable effects of social licence in Australia’s trade and investment. The practical effects are explained through three carefully chosen sectors from Australia. Overall, the article argues that social-licence based narratives are encroaching into international trade and investment and that the current mechanisms are ill-equipped to deal with this trend.