Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 36 Social capital is any value added to the activities and economic outputs of an organisation by human relationships, partnerships and cooperation. Organisations rely on social relationships and interactions to achieve their objectives. Externally, social structures help create a climate of consent or a licence to operate, in which trade and the wider functions of society are possible. Organisations also rely on wider socio-political structures to create a stable society in which to operate, e.g. government and public services, effective legal systems, trade unions and other organisations. To enhance social capital we: • contribute to open, transparent and fair governance; • source materials ethically and treat suppliers, customers and citizens fairly; • respect and comply with local, national and international law; • pay our taxes; • invest in the social infrastructure; • provide communication; • minimise any negative social impacts of our operations and maximise the positive impacts they can have; and • support the development of the communities in which the Venture operates. Socio-economic development Both Merafe and the Venture are committed to working with local authorities, community representatives, inter-governmental and non-governmental organisations and other interested parties, to develop and support community investment projects. Both the Venture and Merafe focus on sustainable projects, with their focus being on education, infrastructure and health issues in the communities in which the Venture operates. PERFORMANCE SOCIAL CAPITAL AND STAKEHOLDER RESPONSIVENESS MATERIAL ISSUES • Our social licence to operate • Uncertainty of the socio- political environment