Ericsson's Supplier Evaluation and Classification concept is used to evaluate and manage our suppliers.

The Code of Conduct and Environmental Requirements are two of nine evaluation criteria that are applicable to all suppliers and are used to monitor supplier compliance in the areas of labor rights, working environment, environment and anti-corruption.
  
Ericsson uses a scorecard system to rank suppliers' compliance with the Code of Conduct. The scorecard comprises a set of 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.
 
Ericsson Market and Business units are responsible for securing their respective suppliers' compliance with the Code of Conduct and the Environmental Requirements.