Investor drops Cisco over human rights

The US sustainable asset manager Boston Common has divested from Cisco Systems over concerns about the IT company’s management of human rights risks. It also accuses Cisco of misleading investors on proxy voting.

Boston Common had been leading an investor coalition, collectively accounting for 20 million shares, that was engaging with the company on its human rights record. However, it said that, ultimately, ‘when pressed for details on how Cisco addresses these risks, they came up short’.

The asset manager had even written to an independent Cisco board member before the divestment, pleading for ‘meaningful dialogue’ on human rights with the company and its shareholders.

It says that, despite the huge political sensitivity surrounding the computer networking industry, US-based Cisco has failed to engage with investors on improving its transparency and management systems.

Boston Common, which had Cisco holdings worth $3.6million (£2.25m, €2.67m), alleges further that the company misled investors over the number of votes cast for certain shareholder-sponsored proposals on the proxy ballot, and has challenged the way Cisco calculates the results.

Cisco has dismissed Boston Common’s accusations out of hand, and says its products have been crucial to ‘providing access, expression and community across the globe’. It says its code of business conduct requires all employees ‘to respect the human rights and dignity of others’, and points out that its board ‘routinely discusses human rights issues’.