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Anti-corruption
a top priority
According to the World Economic
Forum, the cost of corruption
equals more than 5% of global GDP
(USD 2.6 trillion). With over USD
1 trillion being paid in bribes each
year (World Bank), transnational
corruption is a major barrier to
conducting business. Ericsson
takes a zero tolerance approach
to bribery and corruption.
Corruption hampers investment, undermines
legal and democratic systems and
increases the costs of doing business.
In response, around the world anticorruption
legislation is becoming stricter,
enforcement is increasing, and stakeholder
expectations for high standards
of business integrity are growing. Fair
competition and a level playing field are
essential to free markets and business
must play its part to actively reinforce
this throughout the value chain.
With our global operations spanning
180 countries – many with a high risk of
corruption according to Transparency
International’s anti-corruption index – staying
focused on anti-corruption is important
to Ericsson. This is achieved through a
combination of risk assessment, a strong
anti-corruption program, internal audits
and through regularly updated employee
and supplier training.
Prevention and accountability
Ericsson continuously assesses corruption
risks as part of Group Risk Assessment, in
line with strategy and target-setting processes.
Headed by the Group’s Chief
Compliance Officer, the anti-corruption
compliance program targets both prevention
and accountability. The effectiveness
and appropriateness of the program is also
reviewed and evaluated annually by the
Audit Committee of the Board of Directors.
Ericsson has an established process for
the selection of suppliers and in general
does not use agents, unless required by
law or in very restricted circumstances.
Reporting violations
Both employees and third parties may
report suspected violations of law or the
Group’s Code of Business Ethics, which is
available publicly on the Ericsson website.
Reported violations of law or the Code
of Business Ethics are handled centrally by
a Group Compliance Forum, supported by
a Regional Compliance Forum in each
region. We also initiated the transition to a
third party-managed whistleblower process,
i.e. Ericsson will appoint a third party
to whom employees and third parties can
report violations. The process is planned
to be implemented in 2015.
Towards a culture of integrity
To foster individual accountability, Ericsson
employees periodically acknowledge the
Code of Business Ethics and undergo an
anti-corruption e-learning course to raise
awareness of risks, dilemmas and appropriate
courses of action.
By year-end 2014, more than 90,000 of
current employees had completed the
training.
Additional specialized training is provided
to key personnel in Sourcing, Sales
and other relevant functions, such as
regional leadership teams. With regard
to suppliers, focus on anti-corruption in
self-assessment questionnaires was tightened
and a new anti-corruption e-learning
for suppliers was launched. At year-end,
more than 1,100 employees of suppliers
had concluded the training.
Industry commitment
Since 2012, Ericsson has been a member
of the World Economic Forum Partnership
against Corruption Initiative (PACI), aimed
at raising business standards and contributing
to greater transparency and
accountability. Members commit to a set
of principles, which includes zero tolerance
towards bribery and corruption, the cornerstone
of Ericsson’s anti-corruption program.
16 Ericsson | Sustainability and Corporate Responsibility Report 2014