A risk assessment model for prioritizing and selecting markets and businesses for Code of Conduct audits was introduced in 2006 and expanded in 2007.
The implementation of the risk model resulted in a focused audit program for 2005 through to the present. The assessment uses market risk and commodity risk factors to determine what markets and commodities the audit process should focus on.
The market risk factors include revenue, market maturity, and social and political aspects. The commodity risk factors are set as a function of how critical each line of business' processes and activities are from a Code of Conduct perspective.
Through close engagement with suppliers, Ericsson significantly reduced the number of lowest markings on the Code of Conduct scorecard among selected die-casting suppliers in China and India and network roll-out suppliers in India and Brazil.
Current focus resulting from the risk assessment model, see the below results.
