Cisco: Creating an ecosystem of giving back to society

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Cisco Systems is a company that has been in business for over 25 years, a company that is hoping to change the way we work, we live, we learn, we play, a company that believes in the human network effect.

Cisco Systems is a USD 40 billion networking giant with headquarters in San Francisco and Bangalore. Cisco prides itself for being the number one ICT firm and aspires to be the number one corporation globally. But for John Chambers, Chairman and CEO, Cisco Systems, his biggest success has been creating an ecosystem of giving back.

CNBC-TV18's Executive Editor Shereen Bhan caught up with John Chambers to talk to him about Cisco's social activities.

Here is a verbatim transcript of the exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: Let me begin by asking you about your approach, a new philosophy behind corporate social responsibility. A lot of companies not just in India, but globally have been doing their bit to give back to the communities that they service, but it is now a part of core business strategy for you, isn't it?

A: It has been a part of our core business strategy for two decades. My view is those who have been successful in life owe an obligation to give back and help others. It is a huge part of who we are as a company and I think it is no accident that we have been one of the most successful financial companies in terms of results in the world. We are probably the number one and number two in terms of corporate social responsibility with sustained focus on it, so I think they go hand in hand.

Q: Government in India as part of the Companies Bill at this point in time is exploring the possibility of making corporate social responsibility mandatory. So, you put away a certain part of your profits every year towards CSR. Do you think that is the way to go forward or should it be left voluntary?

A: I think each country and the business as you work with the government to see how is the most effective way to make this happen. I think if you only include companies that are having good profit years and they are only giving when they make profits then you miss the key part of corporate social responsibility, it must be continuous. If all you do is just help a little bit on a transaction and then don't have the sustainability, you probably do not get the effect in this of true corporate social responsibility. 

When we respond to the earthquate in China, flood in India, a hurricane in the United States, you find us there three-five-seven years later and you find commitments of nearly millions of dollars on an ongoing basis. So, I think you have to have a programme that isn't about profitability, it is about who you are as a company, it is about giving back and by the way it is just playing good for business as well.

Q: It is good for business.

A: Many people don't agree with what you just said. Many shareholders would say that is not the role of business.

Q: Did you come across that skepticism from shareholders saying that what is this about, is this about building your brand, is this about reputation, what was the sort of reaction?

A: Ten years ago at the world economic forum, I got beat up pretty good about corporate social responsibility, people said that is not a responsibility. There are other times when people push you to be hard on it. I think it has to be a sustained programme. I don't think as a leader your company is going to successful unless you make decisions for where you want to be three-five-ten years out. If you are making decisions on this month, this quarter, this year, you are already in trouble.

This philosophy percolates down to all the Cisco's prgrammes, even disaster relief. In Karnataka's Raichur district, Cisco has set itself a two year agenda to build five villages to rehabilitate those displaced by floods last year. This model township of 500 houses in North Malkapur village marks the completion of the first phase of project Samudaya, a public-private-partnership.

V Anbukkuwar, Deputy Commissioner, Raichur says, "Government is committed, we have already purchased land, enough of land we are giving to the people. That land will have a space for temple, future growth and enough roads, all these things. So, in that way government is committed to give all these facilities. Cisco is giving houses in it, so it is beautiful private-public-partnership I would say."

For Cisco, it is not about building homes, it is also about leveraging the power of its networth and technology to upgrade health services in Raichur. Getting a health-check via video conference for the doctor in Bangalore is a reality for people here.

This successful pilot in Gillesugur village is now to be scaled up and replicated across the district bringing high quality affordable health care to thousands.

The primary school is one of the 11 in Raichur that already has facilities for tele-education. Cisco has been instrumental in setting up systems that allow these students to be taught by teachers who may not be physically present in these remote villages.

Q: How do you align this, the business of being the best company in the world with business of being the best company for the world? How do you actually align these two goals because shouldn't they be align already?

A: Most companies do not align them hardly at all. Corporate social responsibility kept on the side and it is away perhaps of giving back a little bit. My view is that they go hand in hand. So when we focus on in India, we focus about are we good corporate citizens. First that helps us to recruiting people, retaining people and we are in the top 5 places to work in India as you know.

Secondly if governments will look at you and say if you are going to be successful in our country I want you to give back and help us be successful.

Q: The needs of a country like India are very different from a country like China perhaps even the United States. How do you then decide on the basis of the social malu milieu that ou operate in what are you actually going to take forward in terms of CSR plan and programme?

A: The first thing you do, it is like interfacing to a regular customer. You ask what is most important and then what can we make a difference on. While that might vary a little bit by country, what might surprise you is that it actually doesn't. One of the exciting things about India is what we do in India or China because they are willing to skip a generation, change healthcare dramatically, change education dramatically, change the way you use infrastructure, change the way you do with the missions etc.

You can take what you do there and actually bring it to a Western Europe or to the US as well. So many of the requirements aren't that different. In fact I usually find the emerging countries tend to think more out of box and willing to take perhaps good business risk, public private partnerships in the way perhaps the developed markets have not been willing to atleast step to this time.

Q: You have also got the Cisco Foundation now. I understand the principles that are guiding Cisco's CSR activities and programmes are pretty much principles that guide the foundation activities as well then why the need to actually have another entity to look after your CSR efforts?

A: Well because it allows you to fund it in a way that has ongoing life. For specific goals for flood relief like the flood situation which happened. We go in and we partner there. We do specific raising of funds for that, build house and give people a chance, a hope for the future. Same thing on hunger relief, same thing on volunteerism which we expect each Cisco employee to do. That is part of our culture.

Q: The responsibility of an organization of corporate entities to create jobs is to look after the employees, take care of their customer needs. Why do you need to go beyond that? Why do you need to look into education and I understand that businesses can not operate in a failing society. But is it really incumbent upon a company like Cisco or any corporate entity to actually be looking after the healthcare and education and all of that?

A: The answer to your question is no. I think that has to be a decision by each company. Second you've got to decide what are you are able to make a difference. The exciting thing about Cisco is we are synonymous with the internet, we are the network. And the network changes all forms of collaboration or productivity. Most of what is being done in the ICT sector is network enabled.

So we are able to perhaps change education or change healthcare or change jobs creation or change productivity the way other companies are not able to do so. It allows us to learn as well. We learn in corporate responsibility, we bring in main line business. So it is not only the right thing to do it is good for business and you see the direct task.

But most government leaders want you to invest in their country if you have been successful in our country, if you are making money in the country they wanted to give back. Wouldn't it be amazing Cisco together with our partners in India and government could play a key role in allowing every citizen in India that have accessed about that in no other country in the world does not just emerging countries, no other country. If you change education bring video into life there, there are dreams and aspirations and they are doable. But it is part of our culture.