Cisco Issues 2011 Corporate Social Responsibility Report

Results Demonstrate Power of Networking Technology in Multiplying Impact

SAN JOSE, Calif – December 7, 2011 – Cisco today released its seventh annual corporate social responsibility report, which details how the company applies its expertise, technology and partnership strategies to address environmental, social and governance issues.  The 2011 Cisco® Corporate Social Responsibility (CSR) Report, underscores Cisco’s continued commitment to acting responsibly, operating sustainably, and contributing to the communities in which its employees work and live – and lays out the company’s 2012 objectives.

The report outlines Cisco’s efforts in five areas:  governance and ethics;  value chain;  Cisco employees;  society;  and the environment.  Throughout, the report illustrates how Cisco uses the power of the network to multiply its impact across each of these five areas, from connecting the world and improving education and health care, to enabling energy efficiency and helping people collaborate and work smarter.  The CSR report also provides updates on key issues including supply chain management, economic development, data security and privacy, and employee engagement.

In compiling the report, Cisco sought input from 25 external global CSR stakeholders who came together via Cisco TelePresence to provide feedback on the company’s CSR reporting process, performance and emerging issues.  The input resulted in a more navigable format for this year’s report as well as increased transparency on supply chain and governance issues and additional detail on how Cisco’s products and solutions are helping its customers meet their energy and environmental goals.

This year’s report is available in an easy-to-read and searchable PDF format, with accompanying multimedia content.  The 2011 CSR Report also includes an Executive Summary as well as a Global Reporting Initiative (GRI) index.

2011 CSR Report Highlights 

Governance and Ethics

• Cisco is deeply committed to embedding a culture of ethics, and 100% of eligible employees recertified their compliance with the company’s Code of Business Conduct in FY 2011.
• The Report includes an expanded discussion of human rights and the Internet, including specific steps the company has taken to address these concerns.  The report reiterates Cisco’s commitment to selling products that are built to global standards and its opposition to  government efforts to fragment the Internet or undermine freedom of expression.
• Additionally, Cisco was pleased to see the 2011 publication of John Ruggie’s report, Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework.  In FY 2012, Cisco will develop a roadmap for how best to apply Ruggie’s framework and guiding principles going forward.
• In 2011, Cisco was included on Ethisphere’s list of the World’s Most Ethical Companies for the fourth consecutive year..

Value Chain

• Cisco continues to work with the Electronics Industry Citizenship Coalition (EICC) to identify the supply chain for conflict minerals and develop tools to trace these minerals to the source.  Efforts include an in-region sourcing program to trace minerals from the mine to the smelter, and a conflict-free smelter assessment program to certify smelters and refiners that source only conflict-free minerals.
• In FY11, Cisco audited supplier facilities, and took action to resolve all major findings. Cisco has now conducted initial audits, and in many cases repeat audits, of all contract manufacturing suppliers’ facilities, and began to focus more of its audits on the component suppliers of our contract manufacturers.
• In FY12, Cisco intends to launch an appreciation award to recognize suppliers that demonstrate an outstanding commitment to sustainability.

Employees

• Cisco is committed to protecting the health and well-being of its employees and uses its collaborative technology to offer people the freedom to chose how, when and where they work, and by providing a range of health-oriented programs.
• In FY11, Cisco spent more than $113 million on employee training and development, with 82 percent of employees participating in at least one course.
• Telecommuting and flextime opportunities are used by 95 percent of employees and remote working (employees primarily working from home) was expanded in FY11 to reach 90 percent of the regions in which we operate.

Society

• The company provided $295 million in corporate and foundation cash and in-kind contributions worldwide in 2011, including its flagship Cisco Networking Academy® program.
• The Networking Academy offers information and communications technology education to more than 1 million students enrolled in Networking Academy courses at approximately 10,000 academies in 165 countries.
• Cisco employees volunteered 166,445 hours and donated more than $6.3 million, generating more than $5.7 million in matching funds from the Cisco Foundation.
• Cisco installed ICT infrastructure, including Cisco HealthPresence®, in 66 healthcare facilities as part of its Connecting Sichuan initiative. The facilities are used by more than 7000 healthcare practitioners supporting approximately 15,000 inpatients and 280,000 outpatients per month.
• Cisco received the 2010 State Department Award for Corporate Excellence for economic development work in the Palestinian Authority and in Israel.

The Environment

• Nearly 20,000 Cisco employees use Cisco Virtual Office to extend Cisco’s own network into their homes, permitting high-speed access to voice, video and data applications and reducing green house gas (GHG) emissions by telecommuting one or more days each week.
• Cisco is on track to meet its commitment to reduce all Scope 1, 2, and business-air-travel Scope 3 GHG emissions worldwide by 25 percent absolute by CY12 (from a CY07 baseline).
• In FY11, Cisco conserved approximately 16.9 million kWh of energy and avoided 7,400 metric tonnes of CO2e emissions by investing $1.9 million in energy conservation projects. Twenty-six percent of Cisco’s global energy use was from renewable sources.

Quotes:

John Chambers, chairman and chief executive officer, Cisco

“In a time of rapid transition for both Cisco and the communities we serve, Cisco remains deeply committed to acting responsibly, operating sustainably, and contributing to the communities in which we work and live. At Cisco, we know that an intelligent network is not only a powerful tool for doing business, but also for transforming lives, building communities, and protecting the environment. Through the network and strategic partnerships, we can increase the capacity for all of us to succeed.”

Aron Cramer, president and CEO, Business for Social Responsibility

“Technology canplay a critical role in ensuring that businesses are both sustainable and responsible.  Through its networking technology, Cisco has the ability to address issues of corporate responsibility – from the supply chain to environmental challenges – on a global scale.  In the coming months and years, how companies like Cisco commit to and take on these societal challenges could make a critical difference to the lives of many people. The latest report from Cisco provides a window into Cisco’s achievements and challenges in making this vision a reality.”

View videos from the 2011 CSR report:

• Chairman and CEO John Chambers discusses Cisco’s CSR  approach
• See an overview video of Cisco’s CSR  initiatives
• See how Cisco’s EnergyWise™ technology is helping customers manage energy consumption
•  Review Cisco’s Smart Packaging program
• Learn how Cisco’s collaboration with Deaf Aid in Kenya is bringing job skills to the disabled
• Discover Cisco’s efforts to improve employee health and fitness and promote work-life balance
• Learn about training programs which reinforce Cisco’s Code of Business Conduct

Additional Resources: 

• Download CSR Report Executive Summary
• Review Cisco’s 2011 Annual Report and the company website.

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About Cisco Systems

Cisco, (NASDAQ:CSCO, news, filings), the worldwide leader in networking that transforms how people connect, communicate and collaborate, this year celebrates 25 years of technology innovation, operational excellence and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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