EMPTY STATE
COMPARISON TOOL

Cisco Systems 58/100

(NASDAQ:CISCO) 4 of 20 (2016)

Cisco Systems Inc. (Cisco) provides stronger disclosure of its policies and programs aimed at addressing forced labor risks in its supply chain relative to most of its peers. The company ranks fourth on the benchmark overall. Its relatively high rank is driven by its comprehensive disclosure of forced labor policies, internal management systems, and supply chain management processes that support its commitment to eradicate human trafficking and forced labor from its supply chain. Notably, the company demonstrates leading practices with respect to its engagement with relevant stakeholders on human trafficking and forced labor topics. Cisco may consider improving its transparency and performance by disclosing evidence of a management approach to recruitment practices in its supply chain, empowering suppliers' workers to voice their concerns, and establishing a process to remedy the rights of supply chain workers when violated.

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58 /100

2016 Ranking: 4 of 20

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58

Cisco was evaluated both in 2016, when it ranked 4th out of 20 companies, and in 2018, when it ranked 9th out of 40 companies. Compared to 2016, the company decreased its score from 58/100 to 51/100. However, a strengthened methodology makes it harder to achieve the same score, and since 2016 the company in fact improved by disclosing and implementing the human rights risk assessment which it said it was developing in 2016.

METHODOLOGY

51

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

2018 BENCHMARK

2016

58

Cisco was evaluated both in 2016, when it ranked 4th out of 20 companies, and in 2018, when it ranked 9th out of 40 companies. Compared to 2016, the company decreased its score from 58/100 to 51/100. However, a strengthened methodology makes it harder to achieve the same score, and since 2016 the company in fact improved by disclosing and implementing the human rights risk assessment which it said it was developing in 2016.

METHODOLOGY

2018

51

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

2018BENCHMARK

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement

OVERALL 100
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
100
Management and Accountability
100
Training
100
Stakeholder Engagement
100

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 63
Traceability and Risk Assessment
50
Transparency
75

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.

OVERALL 38
Purchasing Practices
0
Supplier Selection
50
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
100

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 42
Recruitment Approach
25
Recruitment Fees
100
Recruitment Audits
0

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 26
INDICATORS
Communication of Policies
25
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
80

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 78
Auditing Process
75
Audit Disclosure
80

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 63
Corrective Action Plans
100
Remedy Programs
25

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