Cisco Systems underscores social investment in report

Internet networking provider Cisco Systems released its first annual Citizenship Report, a summary of the company's responsible business practices and social investment programs for the fiscal years 2004 and 2005 for its global operations.

The report underscores that a focus on social responsibility and social investment is not only is the right thing to do, it also benefits Cisco's bottom line.

"I believe that those corporations that are most successful have an obligation to give back to the communities in which they operate," said Cisco president and chief executive officer John Chambers.

"Cisco is committed to being a good corporate citizen. It is not just the right thing to do - it is also good for business," he added.

The Cisco Citizenship Report affirms the company's commitment to its employees, the environment, and multi-cultural societies around the world, the company said.

In the energy and environment, decreased energy consumption has saved Cisco and its shareholders more than US$6 million a year and reduced annual greenhouse gas emissions by 23,000 tons.

In partnership with the World Health Organization, the Cisco Health Academy - operating in 24 schools in Egypt and 21 in Jordan thus far - is using the Internet to provide health and wellness information to inhabitants of remote and underserved areas. Cisco's Jordan Education Initiative, in 100 schools to date, is providing information, communication equipment and expertise in support of the country's goal to create a knowledge economy through education reform.

More than 40 percent of Cisco employees volunteered their time in community service during the past year, contributing a total of 235,000 hours. The company has challenged itself to increase volunteerism hours by 10 percent in fiscal year 2006.

In response to the Asian tsunami and Hurricane Katrina, Cisco and its employees contributed time and technical expertise, along with millions of dollars in cash and in-kind donations to aid those in need.

In its fiscal year 2005, the Cisco Systems Foundation awarded US$10.5 million to nonprofits for projects around the world, part of a total corporate donation of over US$65 million in cash and in-kind contributions.

In the report, the company announced that its focus is on impact, leveraging its strategic portfolio of social investments and effectively utilizing the company's human resources, technology and cash.

Other facets of corporate citizenship assessed in the report include diversity, product and workplace accessibility, employee development and work-life balance, supply chain management and diversity, corporate governance, human rights, executive compensation, and public policy and political contributions.

"I truly believe that technology can be an equalizing force in the global economy," Chambers said adding that the company's corporate citizenship practices help improve the communities in which it operates, build trust, celebrate our employees, and encourage innovation.

Cisco's first annual Corporate Citizenship report shows the evolution of our ideas and the progress the company has made in recent activities and initiatives. We will continue to report annually on the progress we make with our Corporate Citizenship initiatives.

"Good corporate citizenship is not a destination, but a long- term commitment for Cisco," said Tae Yoo, vice president for corporate affairs.

"We will continue to listen and learn from our employees, customers, partners, shareholders, and community, and we welcome their input as we continually strive to improve our company practices," he emphasized. - Ehda M. Dago-oc