Cisco Corporate Social Responsibility by Alexandre Lemille

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Corporate Social Responsibility

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Quick Facts

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Cisco

Founded in 1984 (L. Bosack/S. Lerner)

NASDAQ: CSCO

65,874 Employees at Q2 FY10

Leader in networking solutions

FY09 Revenues: $36bn – FY09 Profits: $6bn (58th rank)

6th Best Company to work for in the World (Fortune)

14th Best Payer – Average total pay: $135,877 (Fortune)

Cisco grants Stock Options to 40% of its workforce

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Market Capitalization Leadership

January 1995 November 2005 November 2009

Cisco

$10B

Top 12Competitors

$71B

Cisco

$110B

Top 11Competitors

$60B

Cisco

$129B

Top 11Competitors

$23B

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CSR Overview

By Alexandre LEMILLE

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“CSR is not just the right thing to do. It is also good for business.” John Chambers – Chairman & CEO

“Helping to develop communities was inherited from our founders.” Brian Schipper – SVP HR

“Anything connected to the Internet is more green” Laura Ipsen – SVP Global Policy & Governmental Affairs

“Internet opens new borders for people” Tao Yoo – SVP Corporate Affairs

Source: Cisco Corporate Videos

www.cisco.com

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Cisco CSR Overview

Cisco publishes yearly CSR reports since 2005

Cisco has an EcoBoard & Eco Committees

Overall aligning closely with Global Reporting Index & United Nations Global Compact

Since 2001 Cisco employees have logged in more than 980,970 volunteer hours

Greenhouse Gas Emission: FY07 – FY09 = -40%

ISO 14001 EMS: 26 sites ; 70% of employees

Cisco Networking Academy: over 2M students in 10 years

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Cisco’s own Code of Conduct

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Cisco’s Credos

The Human Network

Changing The Way We Work, Live, Play and Learn

The Network as a Platform

To the “Best in the World” and the “Best for the World”

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Cisco CSR Awards Best Place to Work: N. 6th (Fortune 2009) Part of Most Ethical Companies (Ethisphere Magazine 2009) Overall Global Rating of 10.0 (Governance Metric International) World Most Admired Company: N. 1 Networking, N.31 Overall Barron’s World Most Respected companies: N.10 th 100 Best Corporate Citizens (CRO Magazine 2009) 17th rank in World Best Inventions (Time 2009) Green Rating: N.12th overall & N.1 IT (Newsweek 2009) Best of Interop Green Category Award for EnergyWise product “Cause + Action 2009” Award received for One Million Acts of Green N.7th in the US Green Power Purchasers N.6th Carbon Leadership Disclosure Index Green to Gold Award (Beard Institute) San Jose’s HQ: 2009 Waste Reduction Award Program (WRAP) 83% Recycling Rate Low Carbon Contribution Company (China Industrial Economy News) 100% on Corporate Equality Index (Human Rights Campaign) N.11th on the Most Admired company for minority Professionals (The Career Communications Group) Top 100 company for Working Mothers (The Working Mothers Magazine) Top 50 company “Where Women Want to Work” Top 50 Organization for Diversity N.4th Best Employer in India Etc…

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The 3 CSR Axis

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Social Investment

Education– Education Infrastructure Collaboration

–Teachers without Borders: “connect the teachers together”

– iSchool – NYC: using technology to transform education

NGO– One Ecomomy

– Digital Opportunity Trust

– Inveneo

Cisco Foundation– Network as a platform for education

– Cisco Networking Academy

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Environment

Virtual Earth Day – April 20-22

Networked Sustainability (Smart Cities)

Cisco as a technology adviser @ Copenhagen (COP15)

Smart Buildings & Workspaces

Cisco Smart Grid Solutions

Efficient Work Practices

Energy Efficient Data Centres

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Environment

Efficient Work Practices: - changing business models

- collaborative tools

Cisco’s GSX:

Web 2.0

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Employees

Cisco Choice Program Promoting diversity:

- ethnicity: 45% US only ; 21% in VP position (US only)- women: 23% overall ; 15% in VP position- disabilities: building all equipped, educational programs, etc.

Employee Satisfaction (86%) Mentorship Programs Open Employee Communication Employee Development & Advancement Birthday Chats with Chairman Internal Networks, Chat Groups, etc Volunteering Programs

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CSR Checklist – 1/4

DUBAI CSR CHECKLIST & SCORECARD - PART TIME 2011

# Evaluation Item Enter 0 if Not Applicable

Enter 1 for True or 0 for False

Scale of 1 to 5 (1 is Poor and 5 is

Excellent)

Compliance with Laws and Regulations

1 Company fully complies with all international, national, regional and other applicable laws and regulations that apply to the region in which it operates.

1 4

2 Company provides adequate information and training to all employees regarding relevant legal, regulatory and internal requirements that apply to their jobs.

1 5

3 Company has clear guidelines for its employees and agents to not engage in any forms of bribery or corruption in relation to customers and there are processes to ensure this.

1 5

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CSR Checklist – 2/4

Treatment of Employees

1 Company works according to a documented and established policy of no discrimination in the recruitment, training, promotion, dismissal or general administration of its employees.

1 5

2 Company complies with the legislated minimum age for employment of the country in which it operates. If there is no legislated minimum level, the company enforces a minimum age of 15 for its employees. 14 years of age is acceptable under the circumstances specified in Article 2.4 of ILO Convention No. 138 on Minimum Age for Admission to Employment.

1 5

3 Company works according to a documented and established policy of no forced, bonded, involuntary prison or illegal labor.

1 5

4 Employees freedom of association and organization is respected 1 5

5 There is an effective process to deal with employee complaints and grieviences 1 4

6 Employees have regular performance reviews that consider skills development and career prospects

1 5

7 Company takes adequate steps to prevent workplace accidents and injuries to the employees.

1 5

8 Company has emergency preparedness procedures including evacuation plans that are communicated to all employees.

1 5

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CSR Checklist – 3/4 Treatment of Suppliers & Contractors

1 Company enforces on its suppliers and service providers the same standards for Child labor as followed by it and compliant with ILO regulations.

1 4

2 Company selects its suppliers and service providers by way of fair bidding processes based on competitive price, quality, delivery, etc. and not on the basis of inducements, bribes or preferential treatment

1 4

3 Company pursues a fair price policy with its suppliers and compensates them adequately

1 4

4 Personal and confidential information received from the suppliers is respected and used only as agreed and for intended reasons

1 4

5 Intellectual property rights (trademarks, patents, software) of the suppliers are respected.

1 5

6 Company ensures that the suppliers and contractors supplying it and /or working on its behalf have responsible health and safety practices.

1 4

Treatment of Customers

1 Terms of business with customers are clear and respected 1 5

2 Personal and confidential information received from the customers is respected and used only as agreed and for intended reasons

1 5

3 Company ensures that none of its advertising or public statements are misleading and cause public offence.

1 5

4 There is a definite process for acknowledging customer complaints within a defined time frame

1 4

5 The specifications of products and services is clearly mentioned and company's after-sales obligations are clearly specified wherever applicable

1 5

6 Products and services have clear health and safety information regarding their content, use, maintenance and disposal and any health hazards and side-affects are clearly specified.

1 5

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CSR Checklist – 4/4 CSR Plans, Programs & Initiatives

1 Company's plans and activities takes into account the impact on the communities where it operates.

1 5

2 There are initiatives and programs in place to support community projects and activities that are appropriate to the company and the needs of the community

1 4

3 There is a process in place to ensure that risks to public safety resulting from the company's products and services are minimized.

1 5

4 There is a process in place to ensure that there are no forms of bribery or corruption in relation to public officials and government departments.

1 5

5 Company encourages its employees to get involved in community service activities. 1 4

6 Company promotes social causes or issues through its advertising 1 4

7 Company plays an active role in raising awareness about clamities and natural disastors and participating or organizing charities for them.

1 4

Impact on the Environment

1 Company has initiatives for using renewable sources of energy in its production and operational activities

1 5

2 Company has initiatives for reducing its energy consumption (for example by putting intelligent lighting systems in its buildings, by installing energy saving lamps, by promoting remote office, etc)

1 5

3 Company has initiatives for using bio-degradable materials wherever possible in its products and packaging.

1 5

4 Company takes adequate care in disposing the byproducts of its manufacturing activities

1 5

5 Company has initiatives to counter and reduce the environmental footprint that it creates with its manufacturing and operational activities

1 5

Treatment of Shareholders & Investors

1 Company's strategy and prospects are clearly communicated to the shareholders 1 5

2 Company distributes dividends to its shareholders when it makes a profit 0 1

TOTAL SCORE 36 169

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