Promoting public-good in projects intended for public-good: the contribution of social license to operate

Projects intended for public-good, such as urban renewal, have been implemented worldwide. Although generally perceived as beneficial to communities, urban renewal projects are large-footprint projects in nature, which generate various social impacts, both positive and negative, on local residents. By analyzing a representative urban renewal project in China, this study found that such projects might not inherently achieve public-good outcomes. Instead, they could negatively affect residents in the short term or even over a long period. Inadequate planning and poor cooperation with stakeholders might risk creating chronic and repetitive disruptions within the community. To fully achieve public-good, a project should gain a social license to operate (SLO) and grow and manage its intended and unintended social impacts. A developer’s pursuit of a high-level social license contributes to a deeper understanding of the community characteristics, as well as more effective management strategies. This study advances the SLO field by demonstrating that even projects conceived for the public good require deliberate, trust-based negotiation with communities, especially in contexts where impact history shapes expectations.