The extractive industry generates considerable projects, which directly impact the lives of many people and different stakeholder groups inhabiting nearby areas. In order to ensure trust and respect between a given company and those communities, the development of local social support networks and contribution programs is strongly encouraged, if not compulsory in some cases.
Communities, host governments, and lenders – the International Finance Corporation (IFC) for instance – expect extraction companies to invest time and money into special social programs in order to acquire and retain their ‘social licence to operate’. Such community projects require a deep understanding of the social and economic relationships between the extraction project and affected communities in order for the investments to answer genuine needs expressed by beneficiaries.
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