Ericsson is a signatory of the UN Global Compact and continues to support the ten principles stipulated by the Global Compact in the areas of human rights, fair labor, environment and anti-corruption. Our commitment to these principles provides guidance for the continuous development of our Group policies and practices.

This Communication on Progress (CoP) provides an overview of our performance during 2006, in alignment with the objectives of the Global Compact. Page numbers refer to activities performed during the year that are outlined in our 2006 Corporate Responsibility Report.

To ensure the protection of human rights and fair labor practices throughout our operations, to protect the environment and to avoid corruption, Global Compact principles one to ten are addressed in the Ericsson Code of Conduct and Code of Business Ethics. Our progress for 2006 is described below.

Ericsson sees access to communication as a basic human right, and human rights play a central role in our values, professionalism, respect and perseverance, that guide us in business.

Activities and Achievements:

• Joined Business Leaders Initiative in Human Rights (BLIHR) (p.13).
• Updated our Code of Business Ethics to more explicitly express our commitment to human rights
• Held supplier seminars, and conducted audits and follow up activities in China , India and Brazil to ensure social responsibility through the supply chain (p8).
• Piloted corporate responsibility risk-based approach to sourcing for selected commodity and market areas (p.14).
• Ericsson Response cooperates with humanitarian organizations in disaster relief, and in 2007 will bring help to Southern Sudan (p. 37).
• Launched a company-wide corporate responsibility e-learning program (P13).
• Completed corporate responsibility training for Ericsson Board of Directors (p11).

We emphasize professionalism, respect and equal opportunity in our approach to human resources. HR procedures ban discrimination and ensure equality and diversity in the workplace and in employment. We encourage union membership and in countries where workers cannot freely choose membership, work conditions are discussed with local management in a structured format.

Activities and Achievements:

• Piloted corporate responsibility risk-based approach to sourcing for selected commodity and market areas 90 percent response rate on annual employee survey, Dialog, which provides insight into how employees perceive their work environment (p. 31).
• Individual Performance Management (IPM) discussions conducted for 83 percent of employees (p31).
• Global Diversity Policy established and full-time position at Group level established (p.32).

Our environmental policy states our commitment to continuous environmental improvement and pollution prevention. Our EMS is in accordance with IS0 14001, and operations are certified globally to ensure that issues are managed consistently and at the source.

Activities and Achievements:

• Biofuels substituted diesel as a power source for mobile base stations in pilot projects in Nigeria and India (p.18).
• We funded independent research on health and safety issues relating to radio waves and electromagnetic fields (p. 13).
• Environmental impacts were measured with Life Cycle Assessment, and customers were provided with information to help reduce their footprint during use and disposal.
• Improved energy efficiency of WCDMA and GSM radio base stations, exceeding targets set for 2006 (p. 25).
• Met compliance deadline for the European Union Directive on Restrictions on the use of certain Hazardous Substances (RoHS, p. 28) and initiated a project for global phase-out of hazardous substances.
• Worked with global implementation of Ericsson Ecology Management Provision for handling waste from electrical and electronic equipment (p.28).
• Ericsson joined the UN StEP (Solving the E-Waste Problem) initiative (p. 28).

The Ericsson Environmental Policy details our commitment to principles seven, eight and nine.

Our Code of Business Ethics expresses our intolerance to corruption. A whistle blower procedure is in place for employees to report violations relating to accounting, internal controls and procedures or fraudulent practices.

Activities and Achievements:

• 99.9 percent of Ericsson’s employees acknowledged that they had read and understood the contents of the Code of Business Ethics (p.11).
• Conducted annual workshop on corporate governance, including anti-corruption and business ethics for senior Ericsson managers from around the world (p.11).
• Established Group Sponsorship Directive

The Code of Business Ethics, an umbrella code, communicates intolerance to corruption that relates to the tenth principle.

1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. make sure that they are not complicit in human rights abuses.
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. the elimination of all forms of forced and compulsory labor;
5. the effective abolition of child labor; and
6. the elimination of discrimination in respect of employment and occupation.
7. Businesses should support a precautionary approach to environmental challenges;
8. undertake initiatives to promote greater environmental responsibility; and
9. encourage the development and diffusion of environmentally friendly technologies
10. Businesses should work against all forms of corruption, including extortion and bribery.