FAQs

Section Short Cuts

Education FAQs
Environment FAQs
Ethics FAQs
Community and Philanthropy FAQs

Education FAQs

Why is education a corporate priority for Cisco?
Cisco CEO John Chambers often says, "The Internet and education together are the great equalizers." We believe that education is a key to prosperity and opportunity. Networks improve education and expand access.

What are Cisco's key education initiatives?
Our largest initiative is the Cisco Networking Academy Program. Launched in 1997, the Networking Academy program has grown to more than 10,000 Academies worldwide. The global network includes Academies in all 50 U.S. states and more than 150 countries, with a curriculum taught in nine languages. The Academies have more than 400,000 active students in high schools, colleges and universities, technical schools, community-based organizations, and other educational programs. Academy graduates are prepared for networking and IT-related careers in the public and private sectors, as well as for higher education in engineering, computer science, and related fields.

The Academy and its partners are preparing individuals, states and countries to build an educated, competitive, and trained IT workforce.

Does Cisco contribute to global education programs or initiatives?
Cisco's Networking Academy is a global education program with a presence in more than 150 countries.

Within the Academy program, Cisco has created a specific initiative to develop Networking Academies in least developed countries (LDCs). At the G-8 Summit in July 2000, Cisco Systems announced the LDC initiative to work with strategic partners, the United Nations Development Program (UNDP), and the United States Agency for International Development's Leland Initiative, to extend the Cisco Networking Academy Program to 24 of the world's 49 LDCs.

By training a workforce to build and maintain an Internet infrastructure, the initiative partners expect to accelerate the LDC's progress toward full integration into the world economy. Currently, the initiative has established more than 80 Cisco Academies in more than 30 LDCs.

Does Cisco encourage and promote educational opportunities for employees?
At Cisco, we recognize that our most valuable asset is our workforce. Our employees make possible our continued success and the continued growth of the company. We encourage and support our employees' continued education and development in a variety of ways:

How does Cisco and its technology improve education?
The Cisco Networking Academy Program blends e-learning and in-person instruction.

The program uses the Internet to bring frequent Web-based assessments into the curriculum to help measure the progress of students. These assessments are so successful that the program averages 30,000 to 35,000 online assessments each day.

Students and teachers are now able to get immediate and continuous feedback about whether a student is learning the skills and concepts being taught. Cisco believes the Internet is making a significant difference in education through assessment.

Environment FAQs

Does Cisco actively work to reduce its impact on the environment and improve the environment around its locations?

Proactive environmental responsibility is an integral part of Cisco's history and culture, and we have dedicated significant business resources toward becoming an environmentally friendly company. Cisco's environmental policy provides guidelines for five categories of programs that serve Cisco's environmental mission: product design, recycling and waste reduction, environmental management, community and energy conservation.

These programs cover a wide range of environmental initiatives-everything from developing environmentally friendly product packaging and sophisticated product take-back programs to building energy-efficient, environmentally friendly facilities.

What environmental standards does Cisco uphold?
Cisco has been ISO 14001 certified since 2000. ISO 14001 is a series of international standards on environmental management. It provides a framework for the development of an environmental management system and the supporting audit program. As a global company with an environmentally responsible mission, Cisco is proud to have achieved the stringent and voluntary certification that focuses on continual improvement worldwide.

People often label Cisco "a clean industry" company. What does that mean?
The "clean industry" label signifies that Cisco's manufacturing and production facilities, as well as our office facilities, are not harmful to the environment. For example, office lighting and air conditioning comprise the majority of Cisco's energy consumption.

Cisco believes there are always opportunities for improvement, however, and part of being an ISO 14001 certified company is demonstrating continuous progress toward environmental quality goals. Cisco's energy management plan provides a guide for improving energy conservation and reducing operational impact on the environment. Innovation and technology constantly offer ways to operate more efficiently and in more environmentally friendly ways. One of the many examples of technology contributing to Cisco's environmental vision is the use of motion sensors in our campus facilities. These sensors turn off the lights when people leave a room. As the majority of Cisco's energy consumption is related to lighting and air conditioning, a simple conservation measure, such as installing motion sensors, significantly reduces our energy consumption and highlights our efforts to innovate and challenge our initiatives constantly in this area.

How is Cisco recycling and reducing waste?
Cisco's environmental efforts include an aggressive recycling and waste reduction program that focuses on reducing the amount of material generated by Cisco facilities that reaches landfills (called the diversion rate). To increase the rate of recycling, Cisco has placed recycling bins for different types of materials at all locations and launched an aggressive awareness campaign designed to educate employees about how they can recycle at home and at work.

Cisco also hosts special events, such as the Surplus Product Utilization and Reclamation Program (SPUR) team's Take Back program on America Recycles Day. At the event, Cisco collected outdated electronic equipment and recycled it appropriately.

Does Cisco make efforts to ensure that its products are handled in an environmentally conscious way throughout their life cycle?
Reusing and recycling surplus and obsolete equipment is a priority for Cisco. Through the SPUR program, customers are able to return their unwanted equipment to Cisco. The SPUR team reuses and recycles the equipment and materials in an environmentally responsible way.

How does the environment factor into Cisco's product design? Cisco designs environmentally conscious products to promote both ecologic responsibility and sound business. As part of the Design for Environment (DfE) program, Cisco engineers design products that consume less energy to manufacture and less energy to operate, saving money for customers and reducing environmental impact. DfE also accounts for the materials used in product components and the manufacture of products to ensure that no hazardous materials are used and that the products can be recycled when they reach the end of their useful life.

Beyond the products themselves, another focus of DfE is product packaging. Designing environmentally conscious packaging consumes fewer materials and reduces transportation costs by allowing more units to be shipped in each vehicle. Cisco also focuses on using equipment efficiently through the Cisco® Resource Exchange and Disposal Online (CREDO) program. The CREDO virtual equipment exchange allows departments within Cisco to post equipment they no longer use, making that equipment available to other departments and reducing the need to purchase additional and potentially unnecessary equipment. Extending the useful life of equipment and avoiding unnecessary equipment purchases uses resources efficiently and reduces environmental impact.

As a large employer, what is Cisco doing to reduce the impact of employee commuting?
Cisco promotes alternative transportation for employees, including contributing funding for a light rail line and stop at the company headquarters in San Jose. Cisco also participates in programs to encourage use of public transit by providing information on the company's Alt Transit site and contributing to a commuter check program that pays for a portion of employee commuting costs on public transit. Cisco also encourages telecommuting and job-sharing, which reduce the number of cars on the road.

Does Cisco support any third-party guidelines, such as the UN Global Compact?
Yes. Cisco is an enthusiastic supporter of the UN Global Compact. A set of nine principles that cover topics in human rights, labor, and environment, the UN Global compact was created by UN Secretary-General Kofi A. Annan in order to challenge corporate leaders worldwide to adhere to an ethical, fair standard of business.

For more information, view the UN Global Compact page.

Ethics FAQs

What is Cisco's philosophy regarding corporate ethics and governance?
Corporate ethics and governance are vitally important to Cisco. For Cisco to succeed, our customers, partners, investors, and the general public must have confidence that ethical individuals who follow clear, strong practices and policies lead this company. Cisco strives to employ principled individuals at all levels, including executives and the Board of Directors.

Cisco is committed to conducting our operations in compliance with the laws of each country where we operate. We adhere to hundreds of local, state, federal, and international laws and regulations on labor and environmental matters, and we also expect our suppliers to comply with local laws on labor and environmental issues.

What measures does Cisco take to ensure that the company is run ethically?
Cisco strives to meet the highest ethical standards. The Code of Business Conduct is updated on an annual basis and distributed to all employees globally for their acknowledgement. The Code of Business Conduct communicates important policy standards and guidelines for ethical behavior in Cisco's business. The Ethics Program Office is available to answer ethics questions and addresses reported ethics allegations promptly. The Audit Committee of the Board of Directors reviews all ethics issues regarding financial reporting and audit matters.

Additionally, Cisco adheres to the following governance practices and policies:

• Shareholders approve all broad-based stock option plans and the number of shares to be granted under the plans.
• The board's compensation committee, composed of independent directors, approve all grants and set the rules to ensure the grants are made in accordance with the terms approved by the shareholders.
• The audit committee is responsible for retaining, reviewing, and terminating the employment of independent auditors and meets regularly with management, with Cisco's internal audit function, and with the independent auditors.
• Auditing firms limit their role to work on and directly related to the audit, such as tax-related work. Firms responsible for the audit are not to be engaged in unrelated areas such as management consulting, information technology planning, etc.

Does Cisco have a forum for reporting unusual or questionable activities?
Cisco has an ethics office and a hotline that is available to all employees, customers, partners and shareholders in order to ensure confidential and anonymous reporting of any questionable activities. The Ethics Program Office can be reached at:

In the U.S.:
Toll Free in the U.S.: (877) 571-1700
In San Jose: (408) 902-5250 (x25250)

In APAC:
Sydney: 612 8446 7559

In EMEA:
Bedfont (London): 44 20 8824 3212
Brussels: 32 2 704 5893

Or: Email - ethics@cisco.com

Additionally, to report a possible breach of Cisco's accounting practices, auditing matters, compliance by Cisco or its officers or directors with the securities laws or fiduciary legal requirements or any issue you believe should be brought to the attention of the audit committee, please contact them through one of the following avenues:

• Mark Chandler, Cisco's General Counsel, at machandl@cisco.com or 408-527-0238
• Email the Audit Committee of the Board of Directors at auditcommittee@external.cisco.com
• Cisco Systems, Audit Committee, 105 Serra Way, PMB#112, Milpitas,CA, 95035

What are Cisco's practices for financial reporting?
One of the key factors in earning public confidence is reporting reliable financial information. Financial reporting—especially for large companies—can be very complicated. Cisco's approach is very conservative. Our objective has always been to make sure that our financial information is transparent, timely, complete, and accurate. We believe it is essential to have clear policies that ensure everyone involved in managing the company—from the board of directors to the line-of-business managers—is able to act in the best interest of stockholders.

How do Cisco's financial systems tie in with corporate ethics and governance?
Investor confidence in public companies is essential to sustaining a functioning global economy, and we believe strongly that accurate financial reporting contributes to investor confidence. Cisco is dedicated to maintaining the high standards of financial accounting and reporting that we have established. Our culture demands integrity and an unyielding commitment to strong internal practices and policies. We have the highest confidence in our financial reporting, our system of internal checks and balances, and our people, who are objective in their responsibilities and operate under the highest level of ethical standards.

Cisco has always been diligent in maintaining compliance with our established financial accounting policies, which are consistent with requirements of generally accepted accounting principles (GAAP), and we have always reported our results with objectivity and the highest degree of integrity.

We believe our revenue accounting, our reserve setting, and our reporting set the standard in conservatism and accurately reflect the operations of the company. We also include our cash flow statement in our earnings press release, which we believe contributes to investor confidence.

How does Cisco ensure the independence of its Board of Directors?
Cisco has several policies and practices that ensure independence-most of which are also part of the corporate governance listing requirements of the New York Stock Exchange (NYSE) and the NASDAQ.

In accordance with the listing requirements of the exchange on which the shares are traded, the majority of Cisco's board of directors is independent of the company and its management. These independent members meet regularly without the presence of management. In addition, all members of the key board committees—the audit, compensation, and nomination committees—meet applicable tests for independence from Cisco's management.

The audit committee of Cisco's board has established policies consistent with recent corporate reform laws for auditor independence. PricewaterhouseCoopers LLP, Cisco's independent accountants, reports directly to the audit committee.

Community and Philanthropy FAQs

Does Cisco have a dedicated philanthropy program?
Corporate philanthropy is central to our culture and our history at Cisco Systems®. The Corporate Philanthropy department is responsible creating strategic programs that support our corporate values and positive social investments in the community. Our areas of focus are basic human needs, access to education, responsible citizenship, and technology and innovation in nonprofits.

What is the history of Cisco's philanthropic involvement?
Philanthropy has been a part of our culture from the very early days of the company. In 1993, a group of employees began tutoring and donating equipment to an elementary school next to one of our company's first offices. In 1997, Cisco Systems Foundation endowment was established. The initial $64 million endowment laid the groundwork for a long-term, focused philanthropic effort. The Endowment was increased to $137 million 2 years later. Today, our philanthropic efforts range from volunteerism to grant making to employee sharing programs which place our best and brightest in nonprofits needing their expertise.

What is Cisco's approach to philanthropy and how does it yield results?
We want to do our part in building stronger, more productive global communities. We believe that healthy, self-sustaining communities arise when every individual has the means to live, the opportunity to learn, and the chance to share those gifts with others. Cisco contributes employee time, expertise, equipment, and cash to nonprofit organizations around the world, and we multiply the impact of these contributions by combining them with our business and technology expertise. Here are examples of results from two of our programs:

Gender Initiative
The Gender Initiative leverages the Cisco Networking Academy resources to provide women around the globe with IT skills necessary successful careers and more advanced. Approximately 27% of Cisco's Networking Academy students are women, and women teach many of the classes. Cisco's gender-focused programs are located all over the world, including Afghanistan, Algeria, Bangladesh, Ethiopia, India, Jordan, Kenya, Mongolia, Romania, Rwanda, South Africa, Sri Lanka, Togo, Tunisia, Uganda, and the West Bank.

Cisco Community Fellowship/Leadership Development Program
This Leadership development program gives high potential Cisco employees the opportunity to develop their teamwork and leadership skills by working at a nonprofit organization. At just one of the nonprofits, Second Harvest Food Bank, the program resulted in savings of more than 450 person-hours per month and consulting services savings valued at $1.1 million. Second Harvest estimated the efforts of the Cisco Fellows as equal to the ability to purchasing an additional 2.5 million pounds of food or 2 million meals. We are now applying our learning from this one local food bank to our work with America's Harvest, the national network of food banks.

Does Cisco fund and participate in global philanthropy programs?
Cisco is a global company, we have a global responsibility to contribute to the development and preservation of strong global communities. Here are a few examples of Cisco's global philanthropic activities:

• Net Aid. Netaid.org is a joint initiative between Cisco and the United Nations Development Programme (UNDP) designed to help end extreme poverty around the world The initiative facilitates the work of development and relief agencies to help war-torn and disaster-prone countries to overcome crisis while developing lasting solutions to the global challenge of poverty.
• Cisco Networking Academies' Least Developed Countries program. This initiative trains students in LDCs for jobs in the Internet economy. By using our IT skills and technology to accelerate improvement, attain sustainable development, and fully integrate communities into the world economy, Cisco can help make a demonstrable difference in areas where it counts the most.
• Acumen Fund. Cisco's goal in co-founding the Acumen Fund is to create a platform to address timely global issues. The Acumen Fund bridges global gaps by strategically connecting resourcesknowledge, capital, and marketswith local entrepreneurship.

How much does Cisco invest in its philanthropic efforts and initiatives?
Cisco's greatest impact is the expertise we share with nonprofit organizations, so we calculate our donations both in dollars and in-kind donations of tools, talent and technology. Cisco's Corporate Giving is funded from three areas: the Cisco Systems Foundation, Community Investment, and Strategic Global Partnerships.

From 1997 through 2002, Cisco Systems Foundation and corporate contributions totaled approximately $200 million. In fiscal year 2002, Cisco Systems Foundation and corporate contributions totaled $58 million.

Does Cisco partner with other philanthropic organizations?
Cisco's expertise is technology and business operations. We share that intellectual capital, as well as technical and financial resources, with many organizations around the world. Our partner organizations include:

• Habitat for Humanity. Our alliance with Habitat for Humanity brings employee volunteerism and Cisco's technology to areas of the globe where they are needed most.
• Red Cross. Cisco's collaboration enables our employees to join the Red Cross's work in world relief and development, and volunteer services to help people in crisis throughout our global community.
• City Year. City Year is a national service program that unites young adults for a year of community service, leadership development, and civic engagement. Cisco's longtime partnership has enabled the organization to grow to scale, improve operational effectiveness, and provide its staff and corps members with the technology to enable powerful social entrepreneurship.
• Acumen Fund.
• Net Aid.

Does Cisco encourage employee volunteerism?
Employees are encouraged to volunteer and participate in team-building or leadership development projects that benefit the communities in which they live and work. Here are a few examples of employee programs that promote volunteerism:

• Civic Councils An executive-sponsored local Civic Council enables regional campus or sales offices to establish locally relevant employee volunteer projects, award regional grants, and develop strategic projects on behalf of Cisco Corporate Philanthropy.
• Community Fellowship/Leadership Development Program This program gives high potential, high performing Cisco employees the opportunity to develop their teamwork and leadership skills by working on strategic projects in a nonprofit organization, at no cost to the nonprofit.
• Cisco Community and Education Technical Advocate Program This is a unique group of Cisco technical volunteers provide their technical expertise to assist with Cisco technology grants. These highly skilled technicians help grant recipients with planning and installation of networks.
• Volunteering Program Cisco employees can find volunteer opportunities around the world by searching our volunteer database. An employee's volunteer time to a certified nonprofit may be eligible for a matching cash gift from the Cisco Systems Foundation.

How can organizations apply for funding at Cisco?
Organizations interested in applying for the San Jose Impact Grant and Product Grant may complete the application forms online. Cisco does not accept unsolicited applications for Global or Regional Impact Grants.

What organizations are eligible for funding from Cisco Corporate Philanthropy?
Eligibility requirements vary by program. Please review Corporate Philanthropy's web site learn more.

How can organizations recruit Cisco employees for volunteer opportunities?
Organizations may submit volunteer opportunities online by using Cisco's online submission form. Opportunities are reviewed and then posted in Cisco's employee database of volunteer opportunities. Interested employees will contact your organization directly to volunteer.