Lebanon and Cisco Systems - Essay Example

Lebanon and Cisco Systems Introduction The Partnership for Lebanon (PFL) is a unique initiative that has been set up in joint collaboration of five renowned and large US corporations namely Cisco, Intel, Ghafari, Occidental Petroleum and Microsoft. It has several objectives to fulfill such as setting up emergency relief/response, job creation through private sector revival, impart workforce training and education, help set up information and communication technology network, and work towards developing communities. Salam Yamout, the project manager at PFL, has achieved a good progress in last three years of her working; however, the crucial question that bothers her is the sustainability of PFL activities in future not only in terms of resource mobilization but also aligning activities with a clear focus on social responsibility. Key Strategic Lessons Learned – an Analysis One of the important lessons that can be learned from the initiatives of the PFL is that young literate populations do not want to migrate if sufficient job opportunities are created in their homeland. Literacy rate in Lebanon is high when compared with the other Arab nations and the PFLs efforts in partnership with Cisco have prudently exploited this advantage by steering ICT through careful selection of projects and its funding across the nation. Telecommunication network is essential for bringing fast development across all levels and Focusing on ICT and its training and education part, the PFL successfully harnessed the core competency of its partners. Establishing Beirut IX, the internet exchange point in the region by donating two 12000 series routers, the PFL has been able to facilitate free flow of internet traffic. Small and medium enterprises (SMEs) can become backbone of business activities in any country and the PFL’s efforts in arranging microcredit in collaboration with two local microfinance institutions enabled several small ICT ventures to take off and flourish. These endeavors of the PFL have helped the company to connect with community in large scale. Thus, the PFL has been able to demonstrate that the company gives immense importance to CSR activities. While partnering with the Lebanese government, the PFL identified several educational projects such as integration of ICT in public schools of Lebanon. The Cisco Networking Academy Program has been instrumental in expanding Networking Academy sites to impart networking skills. In line with this, the PFLs youth summer camp has been useful to imparting not only ICT skills but also certain life skills such as learning leadership skills, conflict resolution along with fostering civic responsibilities among youths. McElhaney (2009) argues that CSR is not only a risk-mitigation strategy but also an opportunity-seeking strategy. When aligned with business strategy, CSR is a useful tool to enter new markets to carve a suitable niche. Partnership brings talent, knowledge, and experience necessary for CSR initiatives and that is equally applicable to PFL and any other organization in general. CSR helps recruit and retain talented staff improving companys bottom line. Moreover, employing differentiation strategy through CSR initiatives, the company gets an edge over competitors and bolsters its brand equity. Measuring the impact of CSR strategies, in terms of reputation acquired, increase in market share, employee satisfaction, reduced operational expenses, waste material recycled is also important so that CSR efforts do not get derailed. McElhaney (2009) also emphasizes that while CSR connects with the community, internal and external communication is must to apprise all stakeholders about the responsible leadership initiatives undertaken by the company. CISCOs Leadership Position and the PFL Cisco is a leader in networking industry not only in the US but also across the world. Cisco has contributed immensely in bringing the Internet revolution. Cisco culture is known for its innovation, trust, collaboration, integrity of highest level. Cisco has always made it a point to share its success with community wherever it operates. This work culture is deeply ingrained among employees at all levels. The Cisco began its Lebanon office with an aim to promote the technology industry and give employment to the young talented local people. Cisco Chairman and CEO categorically states, "Ive always believed those who are most successful owe an obligation to give back to the community" (Jamali, 2011 p.3). Giving back to the community is a core principle that is always under the watch of the company CEO and top management. Cisco always encourages its employees to steer volunteering activities for the community. CSR programs run by Cisco thus, provide immense value to its all stakeholders that include customers, employees, associates, shareholders and communities wherever they operate. All this is achieved through employee empowerment. These CSR activities have positive impact on the environment, society and governance. Ciscos CSR initiatives not only attract and retain the talented employees but also they help create healthier community while reducing the carbon footprint. Ciscos CSR programs aim at employing responsible business practices and creating social investment. Social investment programs keep focus on providing technological, educational and economic development activities in the communities where they operate by developing public-private partnerships. While initial job of the PFL was to provide relief and reconstruction support after the war in Lebanon, it became soon clear to the leaders of the need to provide support and revive private sector. Accordingly, Cisco opened a project office staffing five top level Cisco employees committing $10 million as an initial investment in Lebanon. The objective was to focus more on social investments leveraging the technology and management capabilities of Cisco for the benefit of Lebanese community. Cisco rightly believed that Information and Communication Technology (ICT) could make huge changes in the lives of people and communities. With ICT becoming a thrust area in harnessing the core competencies of each partners involved, the PFL spearheaded work initiatives in five areas that include developing ICT infrastructure, creating new jobs, imparting workforce training and education while making connections with communities. In order to achieve best out of the PFL interventions, some non-profit partners such as the Canadian International Development Agency (CIDA) and the Digital Opportunity Trust (DOT), the United States Agency for International Development (USAID) along with the Cisco Foundation were involved so that immediate needs of Lebanon could be identified. Some other non-governmental organizations were also engaged to steer work on enlisted priorities. The PFL created jobs in private sectors, especially focusing on small and medium enterprises (SMEs). They undertook equity investments, and provided ICT microgrants in rural areas creating jobs in rural areas. The Cisco Rural Enterprise Development for Information Technology (CREDIT) program partnered with two local microfinance firms to facilitate training in financial, marketing, and business planning areas. Hardware stores, knowledge cafes, computer accessory and servicing shops have been created through CREDIT. Contributions to the tune of $500,000 by Cisco and Intel in these years helped create several small start-ups in ICT field. Recommendation The PFL needs to initiate clean energy action plan by promoting electricity generation from wind and solar energy. Sustainable development in Lebanon is not only a challenge for the companies but need of the time. It is pertinent to note that 97% energy need of Lebanon is imported. Lebanon is highly dependent upon hydrocarbon fuels such as diesel and gas. Also, the building sector consumes major proportion of energy followed by the transport sector. To address sustainability issues, it is crucial that Lebanon uses clean and renewable energy such as solar in building sector. Currently, renewable energy proportion is nil and there is a good scope of installing photo-voltaic based solar power generators, wind turbines and solar water heaters. Promoting clean energy projects will not only generate employment opportunities for the local youth but also keep the environment clean mitigating climate change issues (El-Jisr and Chabarekh, 2012). The PFL needs to target rural youths more intensely and impart them training and education in myriads of ICT related fields where job and small business opportunities are plenty. This will also help the PFL to connect with rural community of Lebanon at large aiming at fulfilling its CSR objectives besides creating new business activities. Making provision of educational loans in partnership with local financial institutions will help rural youths to enroll themselves in such programs and help sustain the PFL activities Conclusion There is no doubt that the PFL is quite successful in meeting its five objectives such as relief operations, ICT networking, job creation, workforce training and education, and community development through its partnership efforts with Cisco, Intel, Ghafari, Microsoft and Occidental Petroleum. Due to these concerted efforts of the PFL, Lebanon has been able to develop business activities, especially in ICT field in private sector. The PFL’s contributions in training and education sector along with facilitating microcredits through local institutions have generated a lot of business activities in SME sector across Lebanon. Owing to Cisco leadership efforts, the PFL has been able to fulfill its major objectives successfully. However, in order to sustain these initiatives in the years ahead, it becomes important to streamline the priorities from the current situation. Renewable energy sector can not only provide good fillip to the private sector activities apart from creating jobs in rural and urban areas but also help steer CSR objectives by connecting with the community across the nation. Since Lebanon is importing most of its energy needs in the form of hydrocarbons, getting energy self-sufficiency through renewable sources such as solar will not only mitigate climate issues but develop a sense of responsibility towards the society. Similarly, the PFL needs to intensify and expand its role in ICT related skill development by imparting training and education to the rural youths as this is one of the areas where there is immense scope of creating employment opportunities. This will also prevent migration of educated Lebanese youth and force them to remain in their homeland. References El-Jisr, K. and Chabarekh, C. (2012). Sustainable Development in Lebanon: Status and Vision. Retrieved July 17, 2014 from http://sustainabledevelopment.un.org/content/documents/986lebanon.pdf Jamali, D. (2011). Partnership for Lebanon and CISCO Systems: Promoting Development in a Post-War Context. Richard Ivey School of Business Foundation. McElhaney, K. (2011). A Strategic Approach to Corporate social Responsibility. Retrieved July 17, 2014 from http://responsiblebusiness.haas.berkeley.edu/documents/Strategic%20CSR%20%28Leader%20to%20Leader,%20McElhaney%29.pdf Read More