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Moral Capital, Trust Reserve, and Social License to Operate

Moral Capital, Trust Reserve, and Social License to Operate
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Author(s): Deepak Gupta (Institute of Technology and Management, Gwalior, India), D. Halaswamy (CMS B School, Jain University, Bangalore, India), Geetha A. M. (Surana College, Bengaluru, India), Anubha Srivastava (Christ University, India), Sandeep Arya (Jaypee University of Engineering and Technology, India), V. Karthiga (School of Management, SASTRA University, India)and Suvarna Patil (D.Y. Patil International University, Pune, India)
Copyright: 2026
Pages: 32
Source title: Investigating Moral Capital in Value Creation
Source Author(s)/Editor(s): Shahriar Sajib (University of Technology Sydney, Australia)
DOI: 10.4018/979-8-3373-6043-0.ch004

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Abstract

Moral capital represents the accumulated ethical goodwill and legitimacy that organizations cultivate through consistent value-aligned behavior, forming a critical foundation for sustainable value creation. This chapter examines the intricate relationships between moral capital, trust reserves, and social license to operate (SLO), exploring how these interconnected constructs shape organizational resilience and stakeholder relationships in contemporary business environments. Through comprehensive theoretical analysis and empirical insights, we demonstrate that moral capital functions as a strategic asset that enables organizations to navigate complex stakeholder expectations, regulatory landscapes, and social accountability pressures. The chapter develops an integrative framework linking moral capital accumulation to trust-building mechanisms and SLO maintenance, while examining the dynamic processes through which organizations can build, preserve, or deplete these critical resources.

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