Collaborative Management Model

Corporate governance is a function of leadership, internal operations, organizational principles, and relationships with employees and other stakeholders, all of which must evolve in response to external forces that include shifting macroeconomic conditions. Like most aspects of business, effective governance can only be achieved through a continuous process of innovation, realignment, and refinement.

Cisco has always aimed to align our operations and resources so we can respond quickly to changing market conditions, drive customer success, and seize emerging opportunities. Most recently, that has involved taking a leadership role in the industry by moving from a centralized command-and-control governance model to a more collaborative model based on a culture of shared goals, a structured planning process, and cross-functional councils, boards, and workgroups.

This collaborative business model also characterizes our CSR activities. We engage in productive conversations and interactions across our entire ecosystem of stakeholders: communities and educational institutions, customers, industry organizations, employees, government entities, shareholders, partners, the media, and an array of other external organizations and advocacy groups. In every one of these engagements, we strive to bring our CSR practices into holistic alignment with our business strategies and corporate values.

CSR Business Process

Cisco’s CSR policies are designed with the goal of creating long-term, sustainable benefits for our business and the global community. Our commitment to responsible and ethical business practices extends to the Board of Directors, management, employees, shareholders, partners, suppliers, customers, and society. We invest considerable energy and resources to align our corporate governance activities with our values.

Cisco applies the principle of sustainability and a consistent business process to all aspects of CSR, including our environmental efforts, social programs, corporate governance, and employee programs. This philosophy is consistent with our long-term focus on delivering value and opportunity to our customers and other stakeholders.

Cisco’s Sustainable Business Practices (SBP) team reviews emerging CSR issues and presents its findings to the Connected Business Operations Council (CBOC) and the Board of Directors, as appropriate. The Board of Directors oversees the implementation of CSR policies and initiatives through the SBP group, through CSR-related councils, boards, and working groups, and through embedded businesses processes. The SBP group works directly with Cisco executive leadership to improve practices and programs and engages with global stakeholders to report and evaluate our CSR performance on an ongoing basis.

Cisco manages CSR initiatives using a cyclical process involving our stakeholders and the business. The steps in this process are shown in the diagram below.