Cisco Systems, Inc

Welcome to the human network

Tuesday 25 October 2011, by Ding Qian, Kelvin You, Oscar Ma, Thomas Sun

4 inspired

a)The main facts about the activities of the company:

Cisco Systems, based in San Jose, California is a multinational corporation with operations throughout the developed and emerging markets. Their main line of business is in the research, designing and manufacturing of products related to communication. Cisco’s products are Internet Protocol (IP) based networking devices that allow both individuals and businesses to communicate efficiently and effectively. Furthermore, their core competencies make Cisco systems a pioneer and leader in their respective industry as they compete with other information technology (IT) related companies.

b)The ethical challenges this company is addressing.

The waste is inevitable in the operations of the products and packaging, but by designing products that use fewer materials, Cisco are minimizing waste before it is created. Through product upgrades, refurbishment, and recycling programs, they are extending the useful life of products. By working with certified product disposal partners, they look to minimize the environmental impact of the small portion of returned materials that cannot be recycled. Electronic waste is a particular concern, because it is both Cisco?s most significant waste stream and the fastest growing type of global waste. According to the UN Environmental Program, the global e-waste steam will soon reach 50 million metric tons annually. In addition to complying with existing regulations, Cisco has established comprehensive end-of-life management and asset recovery programs to keep their products out of landfills while creating value for their company and their shareholders.

c)What makes you believe this company is really ethical and why you trust it.

The culture of Cisco is that everyone in the company always keeps in mind what they could do for the company, for the customers, and for other staffs. And actually they put that into practice. Firstly for the environment, Cisco has an interconnect office and interconnect living plan to promote the sustainable man-made environment and builds many large energy-saving data centers, so it could increase the capacity of network with less hardware and higher energy efficacy. Secondly for the employees, at Cisco, people strive to create an inclusive, balanced, and collaborative environment that enables employees to develop and utilize their talents, give back to their communities, and advance their careers. And the finally for the social investments, Cisco is building and have already built strong, productive communities. They have developed several initiatives to help students develop the skills they need to succeed and provide resources to help nonprofits and NGOs improve their capabilities.

d)The possible challenges facing the company in the future and how you think this company may improve.

CISCO faces largest number of layoffs since 1984. It expects about 1,000 to take a buyout and 4,000 to be fired, according to Gleacher analyst Brian Marshall. As a result of layoffs, it saves $1 billion annual budget to meet Chief Executive John Chambers’ goal on profit growth in 2011. In Chief Executive John Chambers’ opinion, CISCO has two problematic areas, that is, switching and public spending. CISCO require not only change its organization, cutting off underperformed project (such as Flip), but also sell two to three times of its routers in the public sector, bringing the expenses in line with the expected revenue. Nevertheless, CISCO has a responsibility not only to its investors, but also to its employees. Layoffs reflect on CISCO?s unfavorable business practice and less optimize workforce. Moreover, Chief Executive John Chambers believes layoff is inevitable to produce profit growth for investors. Ultimately, CISCO should deploy short term consultants and independent contractors, enable to flexibly adjust the workforce and avoid layoffs in the nearby future.

Bibliography

http://www.cisco.com
http://www.reuters.com/article/2011/05/13/us-cisco-idUSTRE74A78K20110513

Location: San Francisco (United States of America, California)

Sector: consumer electronics, networking, voice, and communications technology and services

Official website: http://www.cisco.com

Key figures:

Year: 1984
City, Country: San Francisco, CA USA
Key Figures: Indicate here the figures you have and can help to assess the company. For instance: Annual Revenue, Annual Profit, Number of Employees, Countries of operations, etc.
Annual Revenue: US$ 43.21 billion
Net Income: US$ 6.49 billion
Employees: 70,700
Countries: It has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets Theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States.

Nbr. visits: 386

Nbr. inspires: 4