Document No: CSI-001 CORPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 1 of 7
POLICY
CORPORATE SOCIAL INVESTMENT (CSI)
CSI-001
DOCUMENT USERS
:
CSI DEPARTMENT
PERSON RESPONSIBLE FOR
KEEPING DOCUMENT CURRENT
:
SENIOR MANAGER:
STAKEHOLDER RELATIONS
Revision
Prepared
Approved
Date
Description
1
Head of Stakeholder
Relations
Executive Director
Chief Executive Officer
April 2022
Final Draft
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 2 of 7
CONTENTS
1. Purpose ....................................................................................... 3
2. Application ................................................................................... 3
3. Interpretation, Definitions and Abbreviations ................................ 3
4. Introduction .................................................................................. 5
5. Policy Directives ........................................................................... 5
4 Approval ....................................................................................... 7
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 3 of 7
1. Pur po se
The purpose of this policy is to provide directives to govern the company’s Corporate
Social Investment (CSI).
2. Appli ca ti on
The policy applies to all Harmony’s operating units. However, due to variations in
regulatory environment, profitability, resources, practicalities, etc., Standard Operating
Procedures (SOP) and annual CSI projects plans may differ from country to country.
Therefore, these SOPs and CSI project plans shall be prepared at a local level.
3. Int er pr et ation, Definitions and Abbr eviations
The following words and expressions bear the following meanings, unless the context indicates
otherwise:
3.1 “Harmony” – Harmony Gold Mining Company Limited and its subsidiaries
3.2 “Operating Unit” – a mine shaft, surface operation, or a metallurgical processing
plant
3.3 “Stakeholders” – individuals, groups of individuals, communities, all the three
spheres of government institutions, and organisations that are interested in and/or
are affected by or can affect operations of Harmony, including State Owned Entities.
3.4 “Employees” – individuals who are employed by Harmony on a full time basis
3.5 “NPO” – Non-Profit Organisations
3.6 “Host Communities” – Communities residing nearby the mine within a metropolitan
or local municipality area
3.7 “Host Municipalities” – municipalities within which Harmony Operating unit
operates
3.8 “Major Labour Sending Area” – A district municipality from which 5% or more of
the mine’s workforce is sourced from
3.9 “Landowners” – individuals, or groups of individuals, who own land or are the lawful
occupants of land subject to mining tenements held by Harmony or one of its
subsidiary companies
3.10 “SE Asia” – South East Asia
3.11 “PNG” – Papua New Guinea
3.12 “Engagement” – A proactive and constructive dialogue with the stakeholders with a
purpose of making the stakeholders to understand our business and activities; and in
return understand how our business impacts them.
3.13 “ESG” – Environmental, Social, and Corporate Governance
3.14 “EXCO” – Harmony Group Executive Committee
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 4 of 7
3.15 “DMRE” – Department of Minerals Resources and Energy (South Africa)
3.16 “Social and Labour Plan (SLP)” – required by law (Mineral and Petroleum
Resources Development Act 102 of 2004 (MPRDA); submitted to the DMRE; and
revised every five years (South Africa)
3.17 “Memorandum of Agreement (MOA)” – A written agreement entered into by the
mine owner(s), selected Landholders, Local and Provincial governments, and State
of PNG, to agree how the mine with contribute to the socio-economic development of
the affected stakeholders (PNG)
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 5 of 7
4. I nt ro duction
Harmony conducts its exploration, mining and production activities in South Africa and in
Papua New Guinea. The investment made in these countries brings about positive
economic impacts. It is however, difficult to separate the economic impacts of mining
operations from the social impacts. Many social problems are direct consequences of
poverty, and if mining helps a community become prosperous, it may also help it tackle
social ills such as malnutrition, illiteracy, and poor health. It is for this reason that Harmony
contributes to the local economic development of host communities in pursuit of obligatory
prescripts of country legislation and/or agreements reached with local government and
communities.
In addition to the local economic development Harmony implements CSI. CSI is aimed at
“touching hearts and promoting humanity” in line with the company’s strategic pillar of
“Responsible Stewardship”. It is used as a lever to bridge the trust deficit where there is a
such and to maintain mutual trust with local stakeholders and host communities by
entrenching the value of brand Harmony.
The nature of initiatives implemented through CSI is informed by challenges faced by our
host countries and host communities, which to date are as follows:
a. Poverty
b. Unemployment and
c. Inequality
5. P ol ic y Dir ec tives
CSI shall be implemented based on the following policy directives:
5.1 Focus Areas
5.1.1 Projects shall be implemented in host communities and Major Labour Sending
areas.
5.1.2 The CSI shall, where possible, apply the asset based community development
model to meaningful empowerment and promote social cohesion.
5.1.3 Focus of CSI shall be in areas that will build social capital, manufactured capital
and natural capital in order to ensure that the host communities are left better off
by the investment
5.2 Nature or Type of Projects
CSI projects shall be of a nature that will have a lasting impact towards alleviation of social
challenges facing the host communities. Consequently, implemented projects should
contribute towards:
5.2.1 Youth, Education and Skill Development – enable communities to gain critical
skills and capacity to actively participate in the economic mainstream
5.2.2 Environment and Community Safety –give back to the environment through
raising environmental and safety awareness among community members to
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 6 of 7
create income streams from waste and reduce the waste that goes to the landfill
sites as well as inculcate a culture of safety
5.2.3 Health and Welfare – improving the quality of life of host and Labour Sending
Communities is an important element of shared value.
5.2.4 Sports, Arts, Culture and Tradition – build social cohesion and fosters inclusion of
communities through support of sports programs and also important cultural
practices and traditions.
5.2.5 Reduction of Poverty and Hunger – instil a culture of safeguarding food production
in order to reduce poverty and have a knock on effect on hunger
5.3 Funding Requirements
5.3.1 Host communities shall be made aware of the CSI programme and its intent,
rules, and application process
5.3.2 Applications for CSI funding should preferably be through registered and
compliant Non-Profit Organisations that provide social development services in
our host communities
5.3.3 Applications or requests for CSI funding should be formalised on a written
proposal that should be submitted through a defined application process
5.4 Exclusions
Harmony acknowledges that there are numerous challenges that beset communities which
cannot be ignored, however it is important to focus on those that intersect with our business
interest for the purpose of achieving shared value. Proposals or request for CSI funding will
not be considered if any of the following applies:
5.4.1 Applications or requests from:
(a) Profit‐making organisations or companies
(b) Individuals pursuit or private gains
(c) Religious organizations for sectarian activities;
(d) Political parties or groups with partisan political affiliations; and
(e) Labour unions.
(f) Third party donors e.g. university rags, debutants, golf days, etc.
5.4.2 Any CSI request where a Harmony employee is a direct/indirect beneficiary due to
conflict of interest.
5.4.3 Expenses relating to operational overheads, travel, or settling off debt.
5.4.4 Events would be sponsored in extra-ordinary circumstances, subject to approval by
the Executive Director: Corporate Affairs or the delegated person.
Document No: CSI-001 COSPORATE SOCIAL
INVESTMENT POLICY
Issue Date: April 2022
Review date: March 2024
Page: 7 of 7
5.5 Employee Voluntarism
Harmony employees shall be encouraged to participate in CSI and community
development by way of employee voluntarism.
This policy affirms our commitment to responsible stewardship as a strategic pillar and
application of ESG framework and practices.
4 Approva l
Duly signed by:
______________________________ __________________________
Mashego Mashego Peter Steenkamp
Executive Director Chief Executive Officer