As Chairman of the Board it lies at the core of my responsibilities to ensure that the Board’s work is conducted in an optimal way, in line with the principles and processes in the work procedure for the Board of Directors.
The Board has two key roles: to provide good support for Group management and to exercise critical review of their work. This requires at all times an open, meaningful dialogue on important issues. In my view, the Group management and the Board do not have to be in agreement from the beginning, but our dialogue must always result in agreement being reached.
It is of utmost importance that the Board is well informed at all times in order to give constructive input to management. The Board’s work is constantly scrutinized and improved to ensure that it has the best possible basis for its resolutions.
Good corporate governance is the basis for building robust corporate culture. However, corporate governance can not only be about efficient and reliable controls and procedures. It is also about the adherence to a strong principle of ethical business practice by all people in the organization – starting at the top and permeating to all employees. This strengthens the business, which in turn generates shareholder value.
Chairman of the Board of Directors
Corporate governance describes the ways in which rights and responsibilities are distributed among the various corporate bodies according to applicable laws, rules and processes. Corporate governance also defines the decision-making systems and structure through which owners directly or indirectly control a company.
This Corporate Governance Report is rendered as a separate report added to the Annual Report in accordance with the Annual Accounts Act ((SFS 1995:1554) Chapter 6, Section 6 and 8) and the Swedish Corporate Governance Code. The report has been reviewed by Ericsson’s auditors in accordance with the Annual Accounts Act and a report from the auditors is appended hereto.
KEY EVENTS 2011
Leif Johansson was elected new Chairman of the Board
Jacob Wallenberg was elected new member of the Board
Three new members joined the Executive Leadership Team