MASHINIi

Cisco Systems Inc.

CSCO.US | Manufacture of communication equipment

Cisco Systems, Inc. is a multinational technology conglomerate that designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. Cisco's core products and services revolve around networking, including routers, switches...Show More

Ethical Profile

Mixed.

Cisco Systems Inc. receives a mixed ethical rating. While recognized as one of the World's Most Ethical Companies for nine consecutive years, the company settled a $4.75 million U.S. government pay discrimination case in 2020, and a caste discrimination lawsuit remains active. Reports suggest counterfeit Cisco gear allegedly infiltrated US military bases, and the company supplied technologies to the Israeli military. On the positive side, Cisco aims for net-zero GHG emissions by 2040 and uses 96% renewable electricity globally. It has exceeded its goal to positively impact one billion people through health tech, and reimbursed $2.2 million in recruitment fees to 1,865 workers, while also committing $5 million to empower Black entrepreneurs.

Value Scores

Better Health for All30
-100100
Fair Money & Economic Opportunity60
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-40
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities50
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products10
-100100

Better Health for All

30

Cisco's technology deployment has positively impacted one billion people worldwide

1
, including 154 million lives in fiscal year 2025,
2
through strategic applications in healthcare such as enabling virtual hospitals
3
and modernizing hospital networks
4
. The company's cybersecurity solutions actively protect healthcare data, processing up to 886 billion security events daily
5
and disclosing over 200 zero-day vulnerabilities in fiscal year 2025
6
. Cisco's programs reach vulnerable populations, including providing connectivity to refugees in 19 countries
7
and supporting community health workers in Kenya
8
, which resulted in a 27% reduction in child mortality and a 7% decrease in child stunting
9
. The company demonstrates exceptional data responsibility through a Privacy by Design approach
10
, public Offer Disclosures via its Trust Portal
11
, and HIPAA compliance
12
. Cisco Crisis Response undertook 31 efforts in fiscal year 2025
13
, providing approximately $15 million in cash grants and product donations
14
, and working with UNHCR to connect refugees
15
. The company offers comprehensive mental health support, including technology that facilitated a 750% increase in virtual mental health visits for CAMH in Canada
16
, and delivers mental wellness programming to underserved communities
17
. Cisco also supports digital health education, such as learning modules on digital health foundations and AI for healthcare workers in Australia
18
. The company achieved a 90% reduction in Scope 1 and 2 greenhouse gas emissions by fiscal year 2025
19
and sources 100% renewable energy for its operations
20
, contributing to negligible health-harming externalities
21
.

Fair Money & Economic Opportunity

60

Through its support for Opportunity International, 86% of 20 million low-income clients reported increased income

1
. Cisco Capital provides 0% interest financing and deferred payment options for Historically Black Colleges and Universities
2
. Additionally, Cisco supports Kiva in offering $69 million in 0% interest loans to underserved communities, including Black, Indigenous, and People of Color entrepreneurs, with borrowers showing significant business improvements
3
.

Fair Pay & Worker Respect

0

Cisco has conducted annual pay fairness reviews since 2016, addressing disparities in base salaries, promotions, stock grants, and bonuses related to gender, race, and ethnicity, with 1-2% of employees typically receiving adjustments.

1
These reviews expanded in 2020, 2021, and 2022 to include bonuses, stock grants, and promotion participation.
2
However, in March 2020, the company paid $4.75 million to resolve U.S. Department of Labor allegations of compensation discrimination against female, Black, and Hispanic employees.
3
Additionally, a lawsuit alleging caste discrimination, harassment, and retaliation against an employee, filed in June 2020, remained active against the corporation as of April 2023.
4
In its supply chain, Cisco adheres to the Responsible Business Alliance (RBA) Code of Conduct, prohibiting forced labor.
5
In fiscal 2023, the company facilitated over $2.2 million in recruitment fee reimbursements to 1,865 workers
6
and conducted 169 supplier audits covering more than 446,000 workers to assess compliance with labor standards.
7
A Human Rights Advisory Committee also advises on human rights initiatives.
8

Fair Trade & Ethical Sourcing

0

In fiscal year 2024, Cisco facilitated the reimbursement of $1,753,318 in recruitment fees to 2,290 workers, addressing issues of forced labor.

1
This follows over $2.2 million reimbursed to 1,865 workers in fiscal year 2023 for prohibited recruitment fees.
2
The company conducted 271 audits covering over 489,000 workers in fiscal year 2024, with 169 supplier facilities undergoing RBA initial audits.
3
A 99% closure rate was achieved for priority nonconformances identified during these audits.
4
Cisco focuses on responsible procurement of minerals like tantalum, tin, tungsten, gold (3TG), and cobalt, utilizing a comprehensive due diligence process and third-party standards such as the Responsible Minerals Assurance Process (RMAP).
5
In fiscal year 2024, 70% of 3TG smelters and 62% of cobalt refiners in its supply chain were conformant to or active in a third-party audit program.
6
Cisco is also exploring blockchain technology to enhance mineral traceability, including field studies in Rwanda and a pilot in Peru.
7

Honest & Fair Business

-40

Cisco maintains a zero-tolerance Global Anti-Corruption and Bribery Policy, applicable to all employees and partners worldwide

1
. Employees are required to complete annual anti-corruption training and certify their understanding and compliance
2
. Business partners are also mandated to adhere to this policy and receive training
3
. The company fosters a speak-up culture, offering multiple reporting channels, including an anonymous EthicsLine, with a commitment to no retaliation
4
. In fiscal year 2023, 99.9% of employees completed their annual Code of Business Conduct certification and training within 45 days
5
.

Kind to Animals

0

No evidence available to assess Cisco Systems Inc on Kind to Animals.

No War, No Weapons

0

Cisco has engaged in military contracts, including a $1.18 billion contract in 2021 for military technical support services

1
and a GEMSS agreement with the DoD in 2022 for software, hardware support, and technical services
2
. The company also supplied servers valued at a minimum of $250 million to the Israeli military
3
. Its private 5G solutions for government agencies have potential defense applications, indicating dual-use technology
4
. Between 2013 and 2022, counterfeit Cisco devices infiltrated U.S. military operations
5
. In contrast, Cisco has supported digital platforms for refugees
6
and collaborated on digitizing cash distribution for conflict-affected families in Nigeria
7
. Its technologies have also aided humanitarian efforts, such as providing internet connectivity during the Haiti earthquake and wireless networks for Syrian refugees
8
. Cisco's CEO has joined a Vatican initiative for ethical AI, focusing on principles like transparency and human dignity
9
.

Planet-Friendly Business

-30

Cisco's 2040 net-zero goal, which includes all scopes of emissions, was approved by the Science Based Targets initiative (SBTi) in 2022 under its Corporate Net-Zero Standard, aligning with a 1.5°C pathway.

1
The company has interim targets to reduce Scope 1 and 2 GHG emissions by 90% by fiscal year 2025 and Scope 3 emissions by 30% by 2030, both against a FY19 baseline.
2
In fiscal year 2024, 96% of Cisco's global electricity demand was met with renewable electricity.
3
The company has not paid any significant environmental fines over US$10,000 in the past four fiscal years.
4
As of the end of fiscal 2024, 19% of Cisco's building portfolio had green building certifications.
5
In fiscal 2024, 87% of waste, including eWaste, was diverted from landfill.
6
Cisco achieved 41% recycled content by weight for plastic used in its products.
7
The company's reporting aligns with TCFD recommendations and includes an enhanced scenario analysis conducted in 2023, examining 2°C and 4°C temperature rise scenarios.
8
Cisco has a multi-year, multi-million-dollar partnership with Mercy Corps to develop climate solutions for drought-affected communities in Kenya.
9
In fiscal 2024, 90% of Cisco's suppliers by spend were required to set GHG emissions-reduction goals and report to CDP.
10

Respect for Cultures & Communities

50

The company has established numerous formal partnerships with indigenous and local community groups. This includes partnerships with IỊisaġvik College

1
, Lac Courte Oreilles Ojibwe University
2
, and the Wiikwemkoong Unceded Territory
3
. The Cisco Foundation also supports Indigenous leadership through partnerships with ASHA and Digital Democracy
4
. Furthermore, the Connected North program has expanded to over 100 Indigenous partner schools
5
.

Safe & Smart Tech

0

Cisco has established a Responsible AI initiative, a governance framework built on principles including transparency, fairness, accountability, privacy, security, and reliability.

1
This framework incorporates internal processes such as development guidelines, testing protocols, and privacy impact assessments for AI technologies.
2
The company also signed the Vatican-sponsored Rome Call, pledging ethical AI development and use to protect human dignity and promote the common good without discrimination.
3
Cisco's AI Defense solution includes AI Model & Application Validation and AI Runtime Protection.
4

Zero Waste & Sustainable Products

10

Cisco achieved 96% incorporation of Circular Design Principles into new products and packaging by fiscal year 2024, working towards a 100% goal by fiscal year 2025.

1
The company's Takeback and Reuse Program ensures that nearly 100% of returned products are reused or recycled.
2
By fiscal year 2024, 41% of the total plastic used in Cisco's products was made of recycled content, with a target to reach 50% by fiscal year 2025.
3
Additionally, Cisco aims to reduce foam used in product packaging by 75% by the end of fiscal year 2025 (from a fiscal year 2019 baseline), having achieved a 57% reduction by fiscal year 2024.
4

Own Cisco Systems Inc?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.