All supplier Code of Conduct audits and follow-up visits are prepared, performed and documented in accordance with the ISO 19011 guideline standard for audit of management systems. Ericsson's Code of Conduct requirements have been a part of the supplier evaluation concept, since 2005. Ericsson also monitors existing suppliers with regards to the Code of Conduct requirements, primarily through audits and follow-up visits.

The audit and reporting process follows a scorecard approach.  The scorecard comprises a set of selected criteria within which Ericsson specifies requirements placed on suppliers, covering such areas as compensation, overtime, noise levels, protective equipment, chemical handling, records of accidents, environmental management systems, health and safety training, and supply chain management. In cases of supplier non-compliance with the Code of Conduct, Ericsson's first approach is to engage in dialogue aimed at reaching measurable improvements. The supplier is asked to follow the agreed improvement plan, and if continued non-compliance is found, the unit responsible for the sourcing process evaluates the risk. In cases of continuing violations, the business with the supplier shall be terminated.

Our auditors have been trained according to a well-defined process that also corresponds to the guidelines of ISO 19011.

Code of Conduct Auditors and Code of Conduct Observers are responsible for auditing suppliers.

A Code of Conduct Auditor identifies and monitors improvement areas and helps suppliers understand and comply with Ericsson's Code of Conduct requirements. The auditor provides value to both the suppliers and their employees and Ericsson by reinforcing a collaborative approach to our supply chain process.

A Code of Conduct Observer is an employee in Ericsson's sourcing department who maintains regular interaction with suppliers. Observers check for deviations to Ericsson's requirements, and in the case of a deviation, observers report them to the supplier responsible.

Our progress is documented in our Corporate Responsibility Reports.