In a globalized world, diversity is a competitive advantage. A diverse workforce enhances team performance at all levels and positively impacts our customers' success. A diverse workforce can better support business success for our global customers. Diversity also enhances our company and employer image and stimulates creativity and innovation. In 2006, Ericsson formulated a Group Diversity Policy and created a new full-time position at the Group level for a director of diversity initiatives, to be implemented during 2007. The policy underscores that all employees should have equal opportunities without discrimination, and that Ericsson prioritizes achieving a representative proportion of women and people of different nationalities and ethnic backgrounds at all levels of the organization.

Diversity priorities are defined at the local level and coordinated by a diversity representative. A system for reporting results of local diversity activities is set to be underway in 2007.

While all line managers in Ericsson are responsible for carrying out the global and local diversity initiatives, employees are expected to cooperate in the elimination of any discriminatory practices. Management and leadership training programs at Ericsson contain modules on promoting and managing diversity.

Since 2004, all candidate lists for senior management appointments should include female candidates. There is also a focus on female executive potentials in the Management Planning Process and Executive Programs.

Such efforts have resulted in an increase from nine women among 45 men in Business Unit management in 2004 to 17 women among 47 men in 2006. There were also increases in the number of female managers at other levels of the organization.

Another objective is to increase the number of non-Swedish managers. This is a more challenging goal since 30 percent of Ericsson's organization is based in Sweden.

Diversity is embedded in Ericsson's core value of respect, and is thus central to how we define ourselves and our future direction.

"With a global workforce, we can be more effective in a global market," says Marita Hellberg, Senior Vice President of Group Function Human Resources and Organization. "A diverse team is a more creative team, and enhances the potential for innovative ideas and business solutions."