Feature Story

February 27, 2006

By Terry Timm Moos, News@Cisco

Innovation in corporate philanthropy programs, outstanding CEO commitment, and a dedication to measuring results has earned Cisco Systems a 2005 Excellence in Corporate Philanthropy Award. Today in New York City, John Chambers, Cisco Systems president and CEO, will accept one of the world's highest philanthropy awards from the Committee to Encourage Corporate Philanthropy.

The 4th annual awards event coincides with National Corporate Philanthropy Day, a day proclaimed by US Secretary of Commerce, Carlos Gutierrez, New York Governor George Pataki, and New York City Mayor Michael Bloomberg to recognize and promote the tremendous philanthropic work of corporations in communities around the world. The goal is to raise awareness of the benefits of corporate philanthropy, honor companies' philanthropic achievements, and inspire corporate America to further engage in philanthropic initiatives.

Giving back is part of corporate culture

Giving back and being an active member of the community has been a basic tenet in Cisco Systems' corporate culture since its founding. Today, the company's philanthropic efforts focus on three areas of social investment: basic human needs, access to education, and responsible citizenship.

"It is an honor to be recognized for the collective efforts and contribution of our employees. Giving back to the global community is something I've always believed is our responsibility, and is a principle at the heart of Cisco's culture," said Chambers. "When we combine not only funds and equipment, but also the time and expertise of our talented employees, we are able to magnify the impact of our efforts."

Innovation in corporate philanthropy programs

Tae Yoo, Cisco Systems Vice President of Corporate Affairs, explained the company's giving strategy, which has evolved from a primary focus on cash and product donations to active employee participation. "Cisco has always had a culture in which employees were actively involved in community programs, and we believe that our employees can make a bigger impact in the community than cash donations alone," she said. "Our employees have helped nonprofit organizations by providing valuable support with the implementation of new technologies and by helping non-profits embrace the associated business process changes. This kind of support provides impactful results and long-term transformation in the organizations and communities that they serve."

Cisco Systems supports important community efforts such as the American Red Cross, the Second Harvest food Bank, and the 21st Century Schools initiative, which is helping to rebuild the education systems in several impacted communities in the Gulf Coast region of the US. Cisco employees also work in the community through Civic Councils and the Cisco Leadership Fellows Program, which gives high-performing managers the opportunity to share their individual skills with non-profit organizations, while building valuable leadership experience.

In addition, the company has a number of global initiatives focused on education, including co-sponsorship of the Jordan Education Initiative and the founding of the Cisco Networking Academies program.

Philanthropy Core to Cisco's Culture

In addition to principles of open communication, empowerment, trust, integrity, Cisco's corporate culture is focused on giving back to the community. This commitment extends throughout the company, from Chairman John Morgridge and CEO John Chambers through each level of employee. "Our philanthropy program is supported by a global network of nonprofit partners, active Chairman and CEO commitment, and high visibility through communication efforts," noted Yoo.

Last year, to commemorate the 20th anniversary of the founding of the company, Morgridge and Chambers challenged employees to donate the equivalent of 20 years of voluntary service, or 175,200 hours, to communities worldwide. Cisco Systems offered to donate up to $3 million to community development programs if this target was met. The result? More than 40 percent of Cisco employees - including Morgridge and Chambers - volunteered during the initiative - and in less than seven months, employees exceeded the goal by 25%.

"Since volunteering is central to our corporate philanthropy efforts, we have created a network of resources to encourage employee involvement across the company," Yoo added. These tools allow employees to select volunteer opportunities that fit their schedules, interests, and areas of expertise. Activities range from single-day events to long-term projects such as technology planning, product support, and serving on the board of directors for nonprofits.

"We believe in intelligent, long-term participation with community organizations," added Chambers. "Our commitment is that we truly engage with the organizations we support, working at many levels to help ensure their success."

Dedication to measuring results

According to Yoo, the company's ability to track the impact of product donations has increased through the development of online measurement tools that require nonprofits to describe the intended outcomes of product grants and report on the results.

Cisco's partnership with CompuMentor, an organization that helps nonprofits obtain product grants through an online service named TechSoup, has led to an increase in product grants. "This helps to ensure that our products are properly distributed and used in ways that promote productivity," Yoo explained.

Cisco Systems will join an elite group of organizations who have been honored by the Committee to Encourage Corporate Philanthropy. Award winners are selected by a jury comprised of individuals from the corporate, nonprofit, media, and academic communities.

"The work we do at Cisco is driven by a simple vision: we want to do our part in building stronger, more productive global communities," remarked Chambers. "This vision is and will continue to be a driving force for Cisco Systems."

Terry Timm Moos is a freelance journalist located in Seattle, Wash.