Corporate Sustainability

FT-MBA Trim IV, 2020-2021

Written Assignment

Submitted by - Group 8
Student Name Student SAP ID Student Roll No

Shantanu Agrawal 80101190053 H008

Donald Francis 80101190217 H018

Ameet Joshi 80101190331 H027

Jagriti Modi 80101190456 H036
Vaibhav Phaltankar 80101190541 H045
Sri Sai Ande Abhishek Vamsi 80101190708 H055

Undertaking
“We, the members of Group 8, certify that the submitted written report is the original work of our team, and all
the analysis and reporting text is entirely our own. Facts, figures, and other relevant information drawn from
sources, where required, is duly acknowledged.”
What were the sustainability goals of the company? How were these goals
attained by the company in 2019?
Cisco’s interest in CSR extends back to the start-up of the company, with the arrival of CEO Chuck Robbins in July
2015, and has reinforced its continuing public engagement. Robbins has turned the Cisco Systems CSR initiative
into a pillar of his tenure- carrying on his predecessors' efforts while simultaneously creating new, ground-
breaking technical solutions to the crucial problems facing contemporary society.
The sustainability goals for FY 2019 are as follows:
 Goal 1: “Reach 2 million Cisco Networking Academy students per year by 2020”
How: Cisco has tried to expand its reach by entering into new partnerships with new countries.
An update to the platform of Experience Networking Academy, launched in FY19, has madd it easy to
use, improving performance & reliability. Features, like best-in-class protection, build trust in
Networking Academy users in Cisco. Network Academy has Workshops on New Technology, the Cisco
developer, in collaboration with DevNet Programme, to support networking advancements and
introduce learners to new ideas through true, hands-on interactions and not just theory. Cisco is
supporting the partners convey Network Academy to more 12,000 schools, Universities, community
colleges, & other Organisations. Some of those partners are encouraging Veterans & rural populations,
prisoners, and the disabled. They have partnered with governments, non-profit organizations, and
academic institutions to achieve their target.
Result: Target achieved by reaching 2.15 million students in 2019

 Goal 2: “Avoid 1 million metric tonnes of GHG emissions in our supply chain from FY12 to FY20”
How: Their 1st quantitative target Emissions target to cover Scope3 (Supply Chain). They were able to
avoid more than 1 million tonnes of GHG till FY19, achieving their 2020 target early on. CISCO was able
to achieve this because of smart supply chain decisions across the organization, including more ocean
shipments, redesign product packaging, and energy efficiency partnerships at manufacturing sites.
Result: 115% of the goal achieved

 Goal 3: “Achieve 80% community impact participation, as measured by employees’ actions, including
advocating for causes they care deeply about, volunteering, donating, and participating in programs that
positively impact communities by 2020”
How: Many STEM (Science Technology Engineering Mathematics) events are hosted and sponsored by
Cisco for underserved students especially girls
Result: This lead to 51% employee-engagement in FY19

 Goal 4: “Positively impact 1 billion people through our social impact grants and signature programs by
2025”
How: Thanks to Cisco’s talented and devoted employees, innovative solutions and investments, the
company has been able to achieve this goal. They trained their employees on digital skills, and also
partnered with many independent consulting firms.
Result: In 2019, Cisco was able to positively impact 469 million people

What parameters did the company identify to measure sustainability in terms

of environmental, social, and governance criteria?
ESG DISCLOSURE, RANKINGS, AND RATINGS
Cisco's CSR reporting meets the Global Reporting Initiative (GRI) Standards: Core Application. They have aligned
themselves with frameworks beyond GRI, as appropriate. For example, they are working towards following the
committee's guidance from the Treadway Commission Sponsoring Organizations (COSO) and the Financial
Disclosures Task Force on Climate (TCFD).
Cisco relies on six main rankings to gain insight into how ESG problems are prioritized and to assess its
sustainability reporting and results. They chose these rankings based on their public visibility, the transparency
of the scoring methodology, and its ability to engage consistently with analysts to discuss their priority topics
and areas for reporting and/or improving performance.
Except for Barron's and the WSJ, which have only published rankings in the last two years, they have retained
this set of metrics for more than five years. For example, they have been reporting to CDP since its inception and
to RobecoSAM (DJSI) since at least 2005. Cisco retained its position on both the Dow Jones Sustainability (DJSI)
World and North American Indices in September 2019 based on information submitted to RobecoSAM in June
2019. Indices of the DJSI, a globally recognized benchmark, score companies based on economic, environmental,
and social dimensions. The detailed approach offered by Corporate Knights uses the following concept of green
revenue wherein Clean revenue includes revenue from all products and services having specific environmental
and social benefits. This includes revenues from the clean transition, the low-carbon economy, and the circular
economy business divisions.

Revenue included in CISCO’s estimate of green revenue includes (CSR report, 2019):
 Items that comply with the ENERGY STAR or requirements for EPEAT
 Collaborative products such as Cisco Webex, Cisco Telepresence, Cisco Virtual Office & Cisco Office
Extend
 Products sold to various social-good markets, such as health care, energy & education
 Security solutions that facilitate the protection of data
The Cisco Government Relations team establishes and campaigns for pro-technology policies and regulations.
They collaborate with policymakers at all levels, concentrating on public policies that affect Cisco, its partners,
and the clients. Current policy priorities include advancing smart cybersecurity policies, protecting free trade,
investing in people and knowledge, building next-gen wireless networks, preserving an open internet, protecting
innovation, promoting investment, and securely connecting the future.

What sustainability risks did the company foresee and what were the risk
mitigation strategies adopted by the company?
Risk of technology: Evolutionary offers tremendous opportunities. To resolve critical global challenges:
improving health, reduction of pollution, making cities smart which needs technology. These same technologies
may also cause damage. Regrettably, sophisticated data and technology could be used to infringe human rights,
when technology is used for personal monitoring or censorship.
They've produced this year a new legal feature under the leadership of Mark Chandler, Executive Vice-President,
Chief Legal Officer, Chief Enforcement Officer, to discuss issues of human rights that emerge in CISCO’s business.
In FY20, the company will start sharing regularly with the Board of Directors, as to how Cisco reacts to
established threats to human rights.

Supply Risks: Cisco assesses its supply base for the social and environmental risk factors, the inherent risks of
service and development, and the exposure to those risks.
They rely on reliable sources to determine vulnerabilities and security in the geography where suppliers work.
These data sources include:
• The UN Human Development Index
• World Bank Governance Indicators
• Other indicators for environmental performance and the presence of forced labor”

How has COVID 19 crisis impacted ‘Corporate Sustainability’ aspects from

the company perspective?
In the view of a pandemic caused by COVID, the focus of Cisco's sustainability practices has changed to providing
immediate relief for the people. Sectors like education, healthcare have been taken up by Cisco effectively, and
not only by funds but also by their workforce strength they are working for the society.
For the society: Cisco has committed $225 Million in cash or kind as a support to both global and local people.
They have rallied there 77,000 employee workforce and encouraged them to help the community partners in
the time of need.
From part of the total commitment, they have allocated $8 million in cash and $210 million in-kind for the
distress caused due to Coronavirus. The major sectors they have focused on are government response, critical
technology, healthcare, and education. Also, a part of the help has been made to Solidarity response heads
supporting WHO (World Health Organisation).
Employees of Cisco have shown great interest in helping people in the best possible way. They have approached
and worked with various non-profit organizations that were helping the communities earlier. Also, the Cisco
foundation launched a campaign and allocated $5 million in grants. They also launched a 72 Hour employee
giving campaign “Let’s give together”, where the employee worked together to get as much donation they can.
Cisco is located in California, in the center of Silicon Valley; they have always taken care of Silicon Valley. They
have announced $50 million for helping homeless people in Silicon Valley. They are also working with the Silicon
Valley community foundation. With support from local officials of Silicon Valley, they have extended their help
to support low-income individuals during the time.
Use of Neopanda: Neopanda was formed to look into the problem of infant death. In the pandemic, Neopanda
changed their concern to COVID infected people. People who caught COVID were monitored and remotely cared
at their locations. At the time when the healthcare resources are having an acute shortage, Neopanda remotely
monitored these patients. Only people who seriously need treatment at the hospitals were taken there, thus
lowering the number of infected patients there.
For the employees: Facilities like work from home, virtual support are no different from Cisco where they have
taken care of their employee and their families' health. In the weekly check-ins, beyond business talks, they
included health information from mental health and medical experts. They also launched a host of new
programs, to maintain the physical as well as the mental health status of their employees and their families:
  Fitness Classes (Virtual)
 Find mental health professionals and consult them
 Childcare facilities
 Flexible work timings

What has been the impact on key stakeholders of the corporation?

We have identified the following stakeholders majorly impacted by Cisco’s corporate sustainability practices:
Public / Customers: Launch of Cisco Networking Academy: The increasing penetration of the internet and
everything migrating to digital, it is very important to educate people. Cisco Networking Academy is in tie-up
with educators, government, and employers to provide access to millions of people for digital skills. In FY 2019-
20, Cisco achieved a milestone of educating 2.15 Million learners out of which 28% are female.
Team Tactical Operations (TacOps): In the wake of disasters this team works for free to restore communications,
this team consists of 12 people supported by 200 trained employee volunteers Customers affected by this
disaster may also seek request from TacOps support team.
Employees: Cisco has always been concerned about the mental health condition of individuals. In one of the
statistics, it is reported that 1 out of every 5 adults in the US are living with a mental health condition, yet they
don’t feel comfortable talking about it. As a part of their Global employee assistance programs, they have
allowed a total of 10 free visits, where they can meet counselors and consult about their mental health.
Cisco has maintained workforce diversity since 2005 to maintain a healthy work environment. Across all the
categories of an employee such as the Technical workforce, Non-Technical workforce, Vice President, Exclusive
Leadership Team, Manager, Cisco has maintained a perfect mix of people across different ethnicity and gender.
This all gives out a strong message and make all employee feel equal while working for the company.
Silicon Valley: Cisco headquarters are located at California, the centre of Silicon Valley, hence they feel it is their
utmost responsibility to address social issues arising at Silicon Valley. In 2018, they have donated $50million for
homeless people at Silicon Valley. This fund will help people to prevent homelessness.

How has the company been able to mitigate and build resilience among
stakeholders?
Cisco believes in building a sustainable, equitable, and inclusive world when interacting with all its stakeholders
whether internal employees, sales partners, customers, leaders, governments, or communities, CSR Opinion
Leaders, or non-profits.

Cisco has always prioritized its CSR Affairs, incorporating it as an essential part of their HR Organisation. They
have a strategic approach to CSR, which includes social investments, as well as, environmental sustainability. At
every step of the CSR Program, they interact with the concerned stakeholders, assessing and monitoring the CSR
Priorities. Cisco’s response to COVID-19 has been no different.

Cisco also has a partnership with World Economic Forum (WEF), among many other institutions, to engage with
world leaders, CSR Influencers, to learn and share best practices. Furthermore, Cisco’s environment team also
gathers feedback independently on social issues, reporting quality and their performance regarding
sustainability and towards CSR including rankings and ratings, which is all included in their umbrella
“Stakeholder inquiries”, wherein they also incorporate “Requests for Proposal” (RFP), supplier qualifications,
financial analysis, shareholder value-creation.
Through continuous assessment and monitoring of CSR goals and their alignment with relevant SDG goals, Cisco
is maintaining resilience among stakeholders. During COVID-19 Pandemic, Cisco had teamed up with other
organisations towards WHO COVID Relief Funds, along with making technology available and affordable for all,
mitigating the digital divide, hoping for a more inclusive future with their Inclusive Future initiative.

What do you think will be the impact of COVID 19 on future sustainability

strategies?
Cisco has already been taking many measures during the ongoing COVID-19 Pandemic. It has dedicated half a
billion dollars to help to fight the virus, joining hands with other organizations, also contributing to the United
Nations Foundation’s COVID-19 Solidarity Response Fund.
Cisco plans to contribute beyond financial measures by providing expertise and manpower to non-profits,
healthcare, education, utilizing technology, to reduce social inequalities. Cisco is already helping workers adjust
to online working with over 2.2 million people via its Cisco Webex platform, helping French, Canadian, German
and Colombian governments work online to formulate policies to fight Covid-19. Cisco has been contributing to
online learning through its video conferencing platforms to support remote teaching in up to 24,000 schools.
The future sustainability goals of Cisco must be aligned with more SGDs along with the incorporation of
technology into fighting the virus, and helping those severely affected by the same. The group has already been
aligning its CSR Goals into the SDGs, but with the Pandemic, the company has been more responsive,
incorporating technology, manpower, and expertise along with financial help.
As per Cisco’s Senior VP for Corporate Affairs, CSR, and Sustainability, Tae Yoo, a global pandemic has opened
doors to a more inclusive future: more affordable internet access, personalized healthcare. She says that this
pandemic has brought people together, and as part of Cisco’s Inclusive Future initiative, she has advocating
closing this digital divide, which is a key element of UN SDGs as well.
Cisco has been consciously trying to inculcate a culture of compassion and mindfulness when behaving
internally as well as externally with non-profits, communities as well as CSR opinion leaders.
References

Patrick Moorhead (2016, Mar 9). Cisco's CSR Program Under CEO Chuck Robbins Is Flourishing. Retrieved from
https://www.forbes.com/sites/patrickmoorhead/2016/03/09/ciscos-csr-program-under-ceo-chuck-robbins-is-
flourishing/#24a2f7ba574e

Cisco CSR report 2019. Retrieved from https://www.cisco.com/c/en/us/about/csr/csr-report.html

Boynton, J. (March, 2020). How Cisco manages Corporate Social Responsibility. Cisco Blogs. Retrieved from
https://blogs.cisco.com/csr/how-cisco-manages-corporate-social-responsibility

Delaney, K. (May, 2020). In the pandemic, a higher calling for Private Sector. Cisco’s Technology News Site.
Retrieved from https://newsroom.cisco.com/feature-content?type=webcontent&articleId=2073176

King, I. (June, 2020). Cisco Spending $500 million on Covid-19 Relief, Anti-Racism. Bloomberg Quint. Retrieved
from https://www.bloombergquint.com/business/cisco-spending-500-million-on-covid-19-relief-anti-racism

Clift, K. & Court, A. (March, 2020). How are companies responding to the coronavirus crisis? World Economic
Forum. Retrieved from https://www.weforum.org/agenda/2020/03/how-are-companies-responding-to-the-
coronavirus-crisis-d15bed6137/

Khan, A. (July, 2020). Four ways to prevent the Sustainable Development Goals becoming a casualty of Covid-19
responses. ODI Bites. Retrieved from https://www.odi.org/blogs/17169-four-ways-prevent-sustainable-
development-goals-becoming-casualty-covid-19-responses