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Conformance for Social License

In: CONVENIENCE ORIENTATION IN CORPORATE CRIME Corrective Recovery Responses for Compliance and Conformance

Author

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  • PETTER GOTTSCHALK

Abstract

Business owners and executives are concerned with corporate conformance in practice for maintaining the social license to operate. A distinction is often made between the legal license to operate and the social license to operate. The legal license refers to compliance with laws, regulations, and rules that apply within the jurisdiction, as discussed in the previous chapter. The social license refers to conformance with norms, values, and guidelines that apply within the society. Compliance and conformance to avoid corporate deviance is not just a matter of individual and organization wrongdoing that can harm other individuals, organizations, and societies. It is also a matter of global sustainability as described by the United Nations. The United Nation’s sustainability goal number sixteen concerns twelve targets for promoting peace, justice, and strong institutions (Windsor, 2022). As argued by Piazza et al. (2024: 249), “organizational theory has long emphasized the importance of conformity to prevailing norms, rules, and laws”.

Suggested Citation

  • Petter Gottschalk, 2025. "Conformance for Social License," World Scientific Book Chapters, in: CONVENIENCE ORIENTATION IN CORPORATE CRIME Corrective Recovery Responses for Compliance and Conformance, chapter 5, pages 93-111, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789819805518_0005
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    More about this item

    Keywords

    Corporate Compliance; Corporate Conformance; Convenience Theory; Corporate Scandal; Crisis Management; Destructive Leadership; Recovery Strategy; Recovery Triggers;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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