Analyzing the Social License to Operate in International Investment Law
DOI:
https://doi.org/10.12728/culj.17.1Keywords:
Corporate Social Responsibility, Indigenous people, International Conventions, Investor-State Arbitration, Investment TribunalsAbstract
A small segment of Investor-State Arbitration flows from the consequences of resistance by the local population (particularly, indigenous people) against the particular investment, and the concerned State cancelling permits granted earlier, precluding all future activities of the investor. This paper seeks to argue that when faced with an investment treaty dispute of this nature, arbitrators should (and indeed may be required to) reflect on the Social License to Operate (SLO) as a part of the applicable law. It aims at creating a framework within which the Social License to Operate should be conceptualized by investment tribunals in the future. The article first examines the nature of the social license to operate and then goes on to highlight its existence in relevant bodies of international law. Thereafter, the article seeks to analyze its use in past investment tribunals, such as the award laid down in Bear Creek Mining v. Peru, and uses this analysis as a springboard to construct a way forward for future applications of the concept.
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