We take an integrated approach to governance, with one set of values and policies
Our governance framework is based on universal standards of business conduct embodied in the Ericsson Group Management System (EGMS). This includes Group policies and directives, along with procedures for managing and monitoring compliance. Our Group policies enshrine our commitment to the UN Global Compact and UN Declaration of Human Rights. Our governance framework is detailed in the Corporate Governance Report, appended to the Ericsson Annual Report.
By actively applying Ericsson’s core values of respect, perseverance and professionalism through the EGMS, we ensure integrity and high standards of conduct wherever we do business. The EGMS requires compliance to our Code of Business Ethics – including the Code of Conduct and Environmental Policy – and the U.S. Sarbanes Oxley Act. Compliance is monitored through our Global Assessment Program (p. 8).
Ericsson’s ‘one-system approach’ meets customer expectations regarding quality and the environment. It also enables Group level ISO9001 and ISO14001 certification. Integrating acquisitions is a litmus test for any governance system. In 2008, the company merged Redback and Tandberg Television into Ericsson. Full compliance with EGMS is expected in 2009. EGMS helps us adapt to evolving demands, including new legislation and stakeholder expectations. As well as delivering cost efficiencies, it builds trust in the way we work.
The CEO holds overall responsibility for implementation of the Code of Business Ethics, Code of Conduct, and Environmental Policy.
The Board of Directors is continuously updated on key audit findings. The Head of Corporate Audit and external auditors report to the Board’s Audit Committee on emerging and existing risks, and opportunities for improvement. The Board of Directors also participates in annual sustainability and corporate responsibility training.
An integrated approach to sustainability means maintaining the necessary controls to minimize risks, while identifying opportunities to create positive social, economic and environmental business impacts.
Ericsson’s Sustainability and Corporate Responsibility function is led by a Vice President and consists of a core team at Group level, supported by a network in our three Business Units and 23 Market Units. The core team coordinates the strategy and targets, reports on performance, and holds regular dialogue with customers, investors, employees and other stakeholders.
A steering committee made up of senior managers oversees implementation of our sustainability strategy across the organization. Its chairman reports to the CEO.
