conducting business responsibly 10 Ericsson | Sustainability and Corporate Responsibility Report 2014
Building trust through responsibility Our solid commitment combined with our culture and core values support our responsible business approach to deliver long-term business benefits. Conducting business responsibly is the foundation of our commitment to sustainability and corporate responsibility. Integrity, transparency and responsibility characterize the way we conduct business. It is critical to maintaining trust and credibility with customers, partners, employees, shareholders and other stakeholders. Governance framework Ericsson has Group policies, processes and directives within responsible sourcing, occupational health and safety (OHS), environmental management, anti-corruption and human rights, and other areas. The Ericsson Group Management System includes the Code of Business Ethics, Code of Conduct, OHS policy, and Sustainability Policy. We are committed to uphold the UN Global Compact Principles and to implement the UN Guiding Principles on Business and Human Rights throughout our business operations. Under our Global Assessment Program, an external assurance provider audits the implementation of these policies and directives, management of risks and achievement of objectives. Policies are regularly reviewed; several were strengthened in 2014. Code of Business Ethics Our Code of Business Ethics sets the tone for how we conduct business globally. It is acknowledged by all employees at the time of employment and repeatedly throughout the term of employment. We have zero tolerance for corruption and bribery, and have set high standards within the areas of responsible sourcing, the environment, occupational health and safety, human rights and labor across our operations. Strengthened focus on human rights Ericsson respects all internationally proclaimed human rights and strives to ensure that we are not complicit in human rights abuses. In 2014, we embedded a stronger human rights focus in our Code of Business Ethics and Code of Conduct (p.12). The Code of Conduct was strengthened with stronger labor standard protection in accordance with UN and customer requirements, including reference to the process for reporting violations, and requirements on suppliers to report breaches of the Code of Conduct. All employees are offered online training on sustainability, anti-corruption and other CR issues. About 90,000 employees have taken the anti-corruption training to date, which covers policies and requirements and explores challenges and dilemmas. In addition, specific training on human rights issues are provided for certain functions where human rights issues are especially relevant, for example, Sourcing, Security and Legal Affairs. Top-level commitment The CEO and senior management actively support the commitment to responsible business and are regularly informed of progress. Sustainability and CR objectives are part of the Ericsson Group 2014 balanced scorecard. A cross-functional Sustainability and CR Steering Group provides guidance for strategic and operational issues. The Board of Directors of the Parent Company is briefed twice a year on sustainability and CR matters; more often if needed. In 2014, briefings covered sustainability and CR strategies and risks, performance, internal operations, OHS, environment, human rights challenges, and sales compliance processes and results. Ericsson | Sustainability and Corporate Responsibility Report 2014 11