9/1/2011

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Functional Partnering: Ethics and the

Learning Organization

Presentation at the SCCE Compliance & Ethics Institute

September 13, 2011

Ruth SavolaineStefani Dawkins

Manager,

Enterprise ComplianceMarketing Comms Manager,

Ethics

Introductions …

Add

photo

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Understand the CultureBefore We Can Influence It

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Founded: In 1984 by a group of

computer scientists

from Stanford

University

IPO: Cisco went public on

Feb. 16, 1990

HQ: San Jose, California,

USA

Cisco Confidential 6© 2010 Cisco and/or its affiliates. All rights reserved.

• IT employees are generally younger (varying

by region of the world)

• Highly virtual – 85% of Cisco employees

regularly work from home or on the road

Cisco Workforce

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• Work with leaders

• Identify and understand company values

• Partner with Communications, Branding and Strategy

• Be proactive with acquired employees, as they come from another

culture

Ethics Influencing theCulture at Cisco

AcquisitionAcquisition

SummarySummary1993 1997 1999(cont)

2000(cont) 2001 2004

2005(cont) 2007 2009

2010

2011

2008

2005

2005

2002

20032000

1998

1999

1996

1995

1994

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Values-Based Ethics

Governance Structure Senior Executives

Governance, Risks

and

Controls

Cross-Functional

Teams

Audit

Investigations

Data Forensics

Finance -

Securities

Public Sector/

Govt

Anti-Corruption

(FCPA)

Employment

Law/Privacy

Board of Directors - Audit Committee

LegalHR

Compliance

Ethics &

Corp Policy

Policy Steering

Committee

August 2011

Finance Operations

Compliance

Training

Enterprise Risk

Management

Corp Compliance

Working Group

Learning &

Development

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.

Code of Code of

Business Business

ConductConduct

Training and Training and

AwarenessAwarenessStandardsStandards

ReportingReporting

InvestigationsInvestigationsMonitoringMonitoring

Ethics Office ResponsibilitiesPositively influencing Cisco’s ethical culture

60.37%

9.16%

8.44%

0.14%

2.43%

14.74%

3.86%

0.43%

0.29%0.14%

Ethics Feedback by Reporting Channel

E-mail: Ethics@Cisco

Webform

E-mail: Direct

Other

E-mail: COBC@Cisco

EthicsLine

CITE

Direct Call

E-mail: apac-japan-ethics

In-person

82%

18%

Anonymous?

No

Yes

How Cisco Employees Prefer to Communicate

Email: 71.53%

Other Online: 13.02%

Phone: 15.17%

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Code of Business Conduct

Cisco Confidential 14© 2010 Cisco and/or its affiliates. All rights reserved.

Evolve with the Company and Employees

From a lengthy legalistic document … to a designed, printed booklet … to a web-based

pdf with embedded links, available in multiple languages

2007-2008 (booklet)Pre-2007 2009-present (online only)

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Cisco “DNA”

Values/Integrity

4 Core Ethics Areas

Foundational

Code of Business Conduct

• I am ethical

• I know the Code

• I share my concerns

• I respect others

• I use resources responsibly

• I avoid conflicts of interest

• I understand polices related to

gifts, hospitality and

entertainment

• I protect what is ours

• I follow the law

• I am accurate and ethical with

our finances

Ten “I” Statements

Uses Common Language

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Telling the Story (situational examples/FAQs)

Communications

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Three Websites

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Messages from Leaders

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Leverage Existing Resources

Two-Way Dialogue – Ethics Discussion Forum

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Ethics Training(interactive and video)

Start Early with New Hires

• Ethics and Compliance Training are embedded in the

New Hire process/website

• “Week 2” – Five days after joining Cisco, they receive

an email from cobc@cisco.com to complete the Code

of Business Conduct mandatory certification within

10 business days

• Example – The “Ethics for New Hires” training

module is available as a video, slides with audio, or

text and graphics (30 minutes)

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Interactive Tools

Video Training for Managers

• Introduction Video

• Episode 1—I Protect What is Ours

• Episode 2—I Understand Polices Related to Gifts and Entertainment

• Episode 3—I Never Compromise of Issues of Integrity

• Episode 4—I provide Safeguards for Employees’ Personal Information

• Episode 5—I Avoid Conflicts of Interest

• Episode 6—I Protect Third-Party Proprietary Information

“Ethical Mindset” videos – For managers who

are new to supervising people

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2727

Two brief educational video:

• One has a straightforward ethics situation and the other a more complex situation

• Key teaching messages:

1. The COBC is a robust resource (inclds. Ethics Decision Tree); It’s easy to use

2. Cisco provides several ways to get ethics assistance

• Humorous approach – “80s Ethics Flashback”

• Diversity – Automatic translation of subtitles for 9 most frequently used languages

2011 Code of Business Conduct Training

Episode 1 “Family Ties” (I am ethical) Episode 2 “Risky Business” (I know the Code)

New COBC Videos

(Use of Humor) Please rate the value of the mix of humor and serious content in these ethics training videos

User Response # of EEs % Extremely Valuable 9,330 14.61%Valuable 30,084 47.10%Somewhat Valuable 16,702 26.15%Not Valuable at All 2,973 4.65%Couldn't play/Didn't view the videos 1,907 2.99%No Answer 2,871 4.50%

(Teaching Messages) I feel that the "80s Ethics Flashback" videos enhanced my understanding of what resources are available in the COBC and ways to get help with ethics questions or concerns.

User Response # of EEs %

Yes 38,848 60.83%

Somewhat 16,754 26.23%

No 3,585 5.61%

Couldn't play the video/Didn't view the videos 1,971 3.09%

No Answer 2,709 4.24%

COBC Video Survey Questions (As of June 13, 2011)

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Feedback on New COBC Video-Based Training

• “Was better (less dry) this year”

• “Not boring, informative, easy to watch.”

• “Ethics Decision Tree helps me very well”

• “More Duran Duran!”

• “The two stories are very useful”

• “Videos made the experience better this year”

• “Clear message from the video”

• “Would like to see more ethical dilemma videos that are specific to my

sales role”

• “Can’t wait for next year’s COBC video”

Ethics Connect

Functionality

Compliance / Disclosure Dashboard

Hierarchical Reporting

Customizable Emails

Campaign Management

Ethics Connect

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3131

In 2011, an additional 6,100+ employees were added to the COBC certification campaign

5635259681

65808

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COBC 2009

COBC 2010

COBC 2011

Partners in Compliance

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HR Enterprise Compliance Training

Evolution of the Learning Function

All of the functional Cisco Learning and Development groups were

consolidated as one global team to increase our ability to

effectively and efficiently educate and engage our human

capital—the Cisco community

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Centralizing Compliance Training

Supporting Compliance Training Globally

Drive completions of compliance training

Catalyst• Create and deploy training

• Initiate and manage change

• Innovate

• Drive completions

• Enable training efforts

Consultant• Strategic Business Partners

• Proactive Compliance

knowledge brokers

• Create Communications plans

• Integrate Compliance content

• Reduce redundancy

L&D Team Support

Ensure that compliance training is in global curricula and communications

Champion the functional conversations on compliance training

Watchdog• Watch and warn on risks

• Monitor requirements

• Monitor training progress

• Quick response for audits

and investigations

The Result: Reduced program cycle time and expense over 50%;

Broader awareness of compliance training; Highly satisfied Cisco

business partners

L&D Enterprise Compliance Team’s Service Role

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Compliance Connect Tool

• Empowers managers and training program owners with instant visibility to the

training status of their business partner or organization

• It’s easier to get completions information, reports and send escalation notices

• Extensible and scalable for use by the Compliance, Risk and Training Communities

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38

Easy access to

compliance training

information, tools and

metrics and service for

the Cisco community

Collaborative

workspace for the

L&D Compliance

team and Business

partners

L&D Compliance Wiki

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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 39

Compliance training is front and center when learners seek development opportunities

Learning & Development Community

The Road Ahead

• Online Disclosure Tools

• More Video & Online Interactive

• Policy Education

• Scrubbed Ethics Cases

• Strengthen Discussion Forum

• Role-based Training

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4141

Feedback Survey – Ethics Program Improvements(Data as of June 13, 2011)

What educational resources are/would be helpful to you in understanding how to perform your work in an ethical manner and in accordance with the Code of Business Conduct and Cisco policy?

(Check all that apply)

User Response # of EEs %

Annual ethics training courses 19,805 29.93%

Publishing actual ethics cases 9,285 13.97%

News stories on the CEC 5,263 7.92%

Training courses on specific topics 5,570 8.38%

CEC Forums 5,357 8.07%

IWE Communities 3,400 5.12%

Communication from your management 2,547 3.84%

Other 482 0.73%

No Answer 12,158 19.04%

New Ethics Training – COI & Sales

Conflict of Interest (COI) Examples:

• Serving on an external board

• Providing technical advice outside Cisco

• Additional work outside Cisco (that is similar

to work done within Cisco)

• Making investments

• Developing products

• Mixing work with family or friends

• Exchanging gifts, entertainment or hospitality

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Policy Program

• Policy Repository (ISO)

• Policy Steering Committee

• “Policy Central” website for

employees & managers

• Launch campaign with a

humorous video

Policy Program

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• Public Availability: A

• Tone From The Top: A+

• Readability and Tone: A

• Non-Retaliation & Reporting: A

• Values and Commitment: A

• Risk Topics: A

• Comprehension Aids: A+

• Presentation and Style: A+

Best Overall

Governance,

Compliance &

Ethics Pgm.

(Large Cap)

2008, 2009 and 2010

2008, 2009, 2010, 2011

Gold Medal (Internal Use)

2011 New York Festivals

International TV & Film

Awards® (announced April 12)

for the training video series for

managers:

“Ethical Mindset”2009 and 2010

Code Overall Grade: A

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