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Due diligence inthe sales processHuman rights considerations are an integrated part of Ericsson’s sales process.Human rights risk management is embeddedinto our operations through our salescompliance process. This is particularlyrelevant for the continuing assessmentand prevention and mitigation of potentialimpacts related to freedom of expressionand privacy. A Sales Compliance Board,supported by a Sales Compliance CoreTeam, governs the process.The cross- functional, senior-level SalesCompliance Board represents LegalAffairs, Trade Compliance, Governmentand Industry Relations, Sales, Marketingand Communications, Business Units, andSustainability and Corporate Responsibility.It meets bi-monthly to review cases, inparticular those with potentially negativehuman rights impacts. The Sales ComplianceBoard may approve with conditionsor reject cases, or in specific cases, recommendthat human rights impacts assessmentsfor specific countries be conducted.Gathering broad inputThe Sales Compliance Core Team meets biweeklyto review cases, using expertise fromseveral functions and departments to discusspotential impacts and review policies.The team looks at sales requests, andwhen necessary, determines what mitigationactions should be undertaken, forexample, that implementing staff at theoperator must have the right product or servicetraining before a contract is concluded.Involving different departments helpsensure that any decision considers multipleangles, in order to reduce the risk thatEricsson’s technology directly or indirectlyimpacts negatively on human rights.Criteria for evaluationSales that trigger one or more of the followingcriteria are evaluated in the salescompliance process for human rights risks:> > Portfolio: This concerns products andservices that Ericsson provides thatcould potentially be used for unintendedpurposes.> > Purpose: This concerns understandingthe purpose and context in which theproduct, service or know-how will likelybe used.SALES COMPLIANCErisk methodology> > Customer: This focuses on enhancingour understanding about to whom wesell/deliver.> > Country: This provides insight aboutthe country to which we deliver, basedon the risk indices of a global riskanalytics firm in areas such as humanrights risks; corruption; democraticgovernance; freedom of opinion andexpression. Countries requiring extraattention are those under sanctions aswell as other countries ranked as a highrisk based on a external risk indices. Werecognize this is an ongoing processand continuously monitor internationaldevelopments.Sales Compliance Board Review of Cases219CountryResultsIn 2014, more than 300 cases werereviewed (see graph). The review andapproval process was enhanced, so thatwhile the total number of cases increasedin 2014, more cases were approved withconditions. We have procedures for followingup on mitigation measures and thedecisions that are taken within the salescompliance process.2013 2014183 Cases approved 21424 Cases approvedwith conditionsPortfolioTotal riskevaluationCustomer3198512 Cases rejected 20Source: EricssonPurposeEricsson | Sustainability and Corporate Responsibility Report 201415