Strong focus on responsible sourcing

All suppliers must comply with high social and environmental requirements as set out in the Ericsson’s Code of Conduct, which also apply to our global operations.

Managing our supply chain responsibly is critical to delivering on our business goals, meeting our Code of Conduct requirements, and mitigating risk. We work with our suppliers to enable them to comply with Code requirements and offer free online training in 13 languages.

Assessing risk

All Ericsson Regions and Business Units have trained auditors and procedures in place to identify and assess high-risk suppliers and to conduct and follow up S-CoC audits and on-site assessments. Critical areas vary between regions and supplier categories but prioritized risk areas include working at heights, road and vehicle safety, anti-corruption, working hours, labor rights, and environmental management, and communication of requirements further down the supply chain.

Monitoring supplier performance

Our aim is continue business with suppliers who can successfully address areas of improvement. In 2013, 623 supplier Code of Conduct audits and on-site assessments were performed by Ericsson’s 190 S-CoC auditors. Year on year, analyses of our auditing activities demonstrate significant improvements. Critical findings among 46 selected high-risk suppliers audited in both 2012-2013 declined by 68%.

Industry collaboration

The Joint Audit Cooperation (JAC) is a cooperation of ten telecom operators. JAC members conduct Corporate Responsibility audits of their suppliers, including Ericsson factories, and share the audit results between the ten JAC members. The members of JAC, all of whom are Ericsson customers, are: Belgacom, Deutsche Telekom, France Telecom, KPN, Swisscom, Telecom Italia, Telenor Group, TeliaSonera, Verizon, and Vodafone. JAC auditors have audited several Ericsson sites and Ericsson suppliers in the last three years, with satisfactory results.

Tracing conflict minerals

Ericsson is taking steps to increase the transparency regarding ‘conflict minerals’ in our supply chain. Read more here.