Strong and supportive relationships underpin our business and create value. Our stakeholders are any interested or potentially affected party, including shareholders, employees, governments, communities, business partners and suppliers, and civil society. We believe we have unique corporate responsibilities to each of these groups: •  Shareholders – We aim to create attractive returns and manage our business risks. Kosmos Energy’s board of directors focuses on building a successful, long-term future for the company and ensures we maintain good corporate governance. The board is comprised of 10 members, including eight independent directors. The board of directors has five standing committees: audit; nominating and corporate governance; compensation; external affairs and political risk; and health, safety and environment. The external affairs and political risk committee evaluates company performance against our Business Principles and advises management on issues of potential political, societal, or security risk. •  Employees – We aim to provide a stimulating and rewarding work environment through a culture that promotes entrepreneurial thinking, facilitates teamwork, and embraces ethical behavior. Directors, officers, and employees are required to comply with all aspects of the Business Principles and our Code of Conduct in their work activities and in representing the company. We do not tolerate discrimination. •  Host Governments – We seek to collaborate with host governments and contribute to national development. Our goal with host governments is to develop a shared agenda based on mutual trust and respect. We begin engaging with host governments at the time of licensing to ensure alignment with national priorities and industry needs. Kosmos aims to become a partner of choice. We are open about our business dealings with host governments because transparency builds trust and accountability. The “Performance Data” on page 57 of this report lists the payments we made to governments in 2016. •  Communities – We believe in engaging local communities in a manner that creates economic and social opportunity and respects human rights. Investing in community relationships ahead of drilling operations is a key part of our approach in every country. Our Stakeholder Engagement and Community Development Policy explains the standards to which we hold ourselves accountable when interacting with communities. We have published this policy on our website at: www.kosmosenergy. com/responsibility. In 2015, we reviewed our global social investment programs to better understand their impacts and align their focus areas with our business. As a result of the review, we enhanced program design and project selection criteria to ensure our efforts are sustainable and complementary with local and national development priorities. Our new approach was implemented in 2016 and targets the following areas: •  Oceans and Coasts – Linking to where Kosmos conducts its operations and where relations with fishing communities are vital to protection of our license to operate. 8 RESPONSIBILITIES TO STAKEHOLDERS 1 BUSINESS PRINCIPLE “One of the ways Kosmos engages its employees is through volunteer activities with long-term local partners. In Dallas, we volunteer with Habitat for Humanity, the Salvation Army, and the North Texas Food Bank. Each of these organizations has a proven track record and is committed to serving and adding value to the lives of those who live in the Dallas-Fort Worth community.” MARY ANDREWS Treasury Manager