We work closely with our suppliers and partners to continually make improvements in their operations. Our suppliers also must agree to the Cisco Supplier Ethics Policy, which outlines requirements related to conflicts of interest, political contributions, legal compliance, and other topics. We follow a formalized, six-step process for communicating our Code of Conduct to suppliers, monitoring compliance, and helping them improve performance. By continually engaging with suppliers, we can multiply the impact we have, both locally and globally, on the environment, employee health and safety, labor standards, and more.
Many of our suppliers undergo third-party audit every year that includes documentation review, a site tour, and management and employee interviews. When auditors identify concerns, suppliers must produce a corrective action plan and demonstrate that corrective actions have been implemented. We work with suppliers to review corrective action plans and monitor their implementation.
We engage with suppliers to help them improve their overall sustainability performance and, in turn, implement similar processes with their suppliers. When suppliers do not meet our requirements, we work with them to improve their performance. These efforts multiply positive impact throughout the supply chain.
We also provide tailored support in certain areas. For example, we might go through the Global Reporting Initiative framework with suppliers that are producing a CSR report for the first time, or help them submit a report to the Carbon Disclosure Project. At the product level, we often work with suppliers to provide components that are more energy efficient or contain less hazardous material.
We established the Cisco Global Supplier Diversity Business Development program to increase inclusion and diversity among our global suppliers. Through it, we promote the growth and use of diverse suppliers -- namely woman- and minority-owned businesses -- multiplying our impact on diverse people and communities around the world.
Working with diverse suppliers gives us access to a broader range of innovative supply chain partners, enhances our competitiveness, and increases customer satisfaction. We offer mentoring and networking programs to help diverse suppliers develop their global businesses capability and competitiveness.