DUE DILIGENCE FOR THE SECRETARY OF STATE'S 2005

UNCLAS AMMAN 007415

SIPDIS

NOFORN
SENSITIVE

FOR UNDER SECRETARY SHINER FROM CHARGE HALE

E.O. 12958: DECL: 09/15/2010
TAGS: BEXP EINV ELAB ETRD KSEP SENV JO
SUBJECT: DUE DILIGENCE FOR THE SECRETARY OF STATE'S 2005
AWARD FOR CORPORATE EXCELLENCE: JORDAN NOMINATION

REF: STATE 165617

Classified By: CDA DAVID HALE FOR REASONS 1.4 (B),(D)

SENSITIVE BUT UNCLASSIFIED. NOT FOR FOREIGN DISSEMINATION.
PROPRIETARY INFORMATION.


1. (U) Embassy Amman's Country Team reaffirms our
nomination of Cisco Systems for the Secretary's 2005 Award
for Corporate Excellence. Cisco clearly excels in adhering
to its core value of corporate social responsibility, and we
are glad to respond to your request for further due diligence
on the issues described in reftel. Thank you for your
interest in Cisco Systems in Jordan as a model of corporate
excellence.


2. (SBU/NF) Following answers are keyed to questions in
paragraph 4 of reftel (repeated here):

A) Could there possibly be any downside or embarrassment
caused by the selection of your post's nominee?

ANSWER: None that post is aware of. King Abdullah hosted
Cisco CEO John Chambers at the Jordan ICT Forum in 2004;
Chambers left a very positive impression with members of the
ICT sector. Cisco has partnerships with two reputable
information technology companies in Jordan -- Rubicon and
Estarta -- in addition to offering its products through the
retail market.

B) Do you have any information concerning job creation in the
United States resulting from the operations of the company
you nominated?

ANSWER: We do not have specific information, but note that
worldwide, Cisco Systems employs over 37,000 individuals.
The high-technology nature of the internet-protocol based
networking technologies and services that Cisco offers - and
the company's stable growth - are strong indicators that the
company will continue to have a positive impact on job
creation in the United States, either directly or through
backward linkages and downstream businesses in the U.S.-based
high-tech sector.

C) What is your assessment of the company's trade and
investment activities with regard to helping stimulate
economic growth in the U.S. and increasing American exports
(what is the U.S. content of its products)?

ANSWER: Cisco Systems continues to have a significant
presence in California, North Carolina, Texas, Virginia, and
Massachusetts. Cisco Systems leverages partnerships globally
to produce and export U.S. manufactures with high levels of
U.S-based intellectual property. The high-technology nature
of its core business assures its role in making a strong
contribution to U.S. economic growth.

D) What is the state of labor conditions in the company's
facilities and are workers unionized?

ANSWER: In Jordan, Cisco's partners are considered to be
model employers. The majority of employees in these firms
are professionals; compensation is reportedly viewed to be
higher than the local average. These employees are likely to
be members of nationwide professional associations. Nothing
would prevent workers in these companies from forming a union
under the laws of Jordan. Worldwide, Cisco prides itself on
its high level of employee relations and commitment to a
diverse workforce in an inclusive work environment.


3. (SBU/NF) In response to reftel paragraph 5 on the alleged
use of Cisco products for repressive measures, Post has no
information at its disposal to indicate such use in Jordan or
elsewhere. Computer equipment of all types is used in Jordan
for legitimate purposes in the Global War on Terrorism. We
believe that some Cisco IP systems may be used in cooperative
efforts to pursue legitimate objectives regarding security in
line with Jordanian and U.S. laws.
HALE