b'wwStakeholder engagementSection 172 StatementA key focus of the Board is to promote the success ofthe Company for the benefit of its members as a whole, whilst having regard to those specific matters outlined in Section 172 of the Companies Act 2006 (the Act), being:the likely consequences of any decision inThe following statement providesFor more information and to see how we the long term; an overview of how the Boardpromote the success of our Group, the the interest of the Companys employees; performs its duties. following are examples of our stakeholder the need to foster the Companys businessengagement that have taken place during relationships with suppliers, customersBy the very nature of its activities, Mercia hasthe financial year in respect of:and others; always been a business with a long-term the impact of the Companys operations onfocus. As the graphic on page 13 shows,Our colleaguesthe community and the environment; backing typically young, technology-ledPages 39 to 41the desirability of the Companybusinesses requires patience, knowledge and maintaining a reputation for highinvestment/lending expertise. The Board standards of business conduct; and monitors investment activity across both theOur ownersthe need to act fairly between members ofGroups multiple funds and its balance sheet.Pages 39 and 60 to 64the Company. Generating shareholder and fund investor returns takes time, but Mercias growing trackOur fund investorsThroughout this Annual Report and, inrecord of successful exits and fund IRRs isPages 26 and 39particular, the following pages, there are manyevidence that its business model is working in examples of how the Board has regard for thethe interests of its investors and investees. Our investee companieslikely consequences of any decision in the Pages 30 to 37 and 39long term; the interests of our employees; As a fast-growing group, day-to-day decision the need to foster relationships with keymaking and stakeholder engagement isOur communitiesstakeholders; the impact of our operations delegated to the Executive Directors, Chief on the community and environment; and howOperating Officer and other senior employeesPages 42 to 44the Group maintains a reputation for highthrough our governance framework and standards, whilst conducting its business in therefore naturally occurs at an operational a fair and responsible manner. The keylevel. However, the Board regularly receives stakeholders we consider in this respect areand formally meets to discuss information our people who work for us, our owners, ourcovering all Group activities, to help it fund investors, our investee companies, ourunderstand and monitor the impact of the local communities and those who provide theGroups operations, as well as the interest and services we rely on to operate our business. views of key stakeholders.This information is provided to the Board through detailed reports and in-person Investor meetings presentations on a wide range of stakeholder c.60 related topics. As a result of these activities, the Board has a good overview of the outcomes of stakeholder engagement throughout each financial year, enabling the Investees webinars hosted Directors to comply with their duties under 23 the Act.For more details on how the Board operates, including a summary of its key activities during the year, see pages 60 to 62.38 Mercia Asset Management PLCAnnual Report and Accounts 2020'