The electronics manufacturing supply chain extends worldwide and into jurisdictions where breadth, depth, and enforcement of social and environmental regulations vary. We share responsibility with our suppliers to raise social and environmental standards. We work collaboratively with suppliers toward the goals listed in the Cisco Supplier Code of Conduct.

As participants in Cisco's supply chain, suppliers commit to:

• Recognize and uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community
• Recognize that the quality of products and services, consistency of production, and workers' morale are enhanced by a safe and healthy work environment
• Recognize that environmental responsibility for safeguarding the health and safety of the public is integral to producing world-class products
• Adopt a system to manage adherence to this code
• Meet social responsibilities and uphold the highest standards of ethics while achieving success in the marketplace

Performance Reviews

Developing and managing a world-class supply chain requires integration of components, including fabrication services, component supply, design and testing services, and logistics and transportation. It also requires building strong, collaborative relationships with suppliers to assure manufacturing quality and integrity.

To achieve this, we conduct routine performance reviews with our suppliers to proactively identify areas for continual improvement. These reviews are incorporated into our tracking and analysis of our suppliers' environmental, technical, health and safety, and labor metrics (also known as the "Cisco Scorecard") and identify areas where the supplier may need to improve in order to comply with our code of conduct.

Future Plans

To aid ongoing development of the code of conduct, Cisco is committed to collaborating with our EICC colleagues to assure a stronger supply chain for the industry. We intend to do this through development of common standards, tools, and processes for adoption across the electronics industry.

Cisco is currently launching, in a staged approach, a manufacturing-focused product compliance review to be implemented throughout its supply chain. The focus area for FY2007 is product environmental compliance.