From time to time we publish statements, clarifications or comments, as well as other relevant information regarding articles and interviews.


Statement regarding articles in Svenska Dagbladet

September 19, 2017

Following two articles about Ericsson in Svenska Dagbladet, published online on Septmember 18 and in the paper on September 19, Ericsson makes the following statement:

We are disappointed by the articles about Ericsson that Svenska Dagbladet published on September 18 and which include a speculative description of the ongoing SEC investigation.  Since the SEC and DOJ initiated their questioning in March 2013, Ericsson has voluntarily cooperated and provided information to the authorities. We have confirmed that Ericsson employees at various levels and with different responsibilities have been assisting the US authorities, as is natural in these cases. Since 2013, approximately twenty-five Ericsson employees have been interviewed by or presented to the authorities, including a few members of the management team as well as employees from different functions and different regions who, in their respective roles, have knowledge of processes, policies and facts.

As we described in our response to Svenska Dagbladet (our full response is found further down), the appointment of the management team has been preceded by a solid vetting process and Börje Ekholm has full confidence in his team.

We also note that Svenska Dagbladet speculates about possible fines by the SEC. We will not comment on such speculations. However, as a listed company, we always follow the requirements to publicly disclose any information about events that would have a material impact on the company or its finances. Should such materiality arise, Ericsson will disclose information in accordance with regulatory requirements.

Response sent to Svenska Dagbladet on September 18:

Ericsson has been working with business ethics and compliance for a long period of time. We face the same challenges as other global companies in ensuring we conduct our business in an ethical and compliant way. We are not perfect and we can’t rule out that mistakes have been made in the past or might happen in the future. We are however, working very hard to constantly improve our compliance processes and programs, how we follow-up and how it is implemented in the organization. When we find wrongdoings, we take actions and learn from them to limit the risk that such conduct is repeated anywhere in our organization. For instance, in 2016, 86 employees had to leave Ericsson, due to violations of the company’s Code of Business Ethics.

Our compliance program

In 2011, Ericsson formalized its compliance program, under the management of a Chief Compliance Officer, who reports to the Chief Legal Officer, and has since then strengthened the program incrementally. This applies to both the structure and the execution of the program, as well as follow-up and how it is implemented in the organization. Some of the highlights of this process:

2004: Code of Business Ethics adopted, summarizing the company’s Code of Conduct and other important Group directives and policies.

2007: Whistleblower process established.

2007: First compulsory staff training platform “E-learning Anti-Corruption 1.0” launched and completed by more than 70,000 employees.

2008: Start of phase out of Sales Agent System.

2010: Start of GRI voluntary reporting on incidents.

2011: Chief Compliance Officer appointed to head up Ericsson’s anti-corruption program.

2011: New restricted agent policy adopted.

2012: Formal anti-corruption program adopted – evaluated by the Audit Committee of the Board at least annually.

2013: Updated agent policy further restricting substantially the possibility to retain and use agents.

2013: New Anti-Corruption Directive adopted.

2013: New e-learning anti-corruption training launched, completed by more than 90,000 employees.

2013: Group Compliance Forum and Regional Compliance Fora established for the handling of reported violations of the Code of Business Ethics.

2015: Ericsson Compliance Line (an externally administrated whistleblower tool) implemented.

2016: Ethics and Compliance Board established, comprised of members of the Executive Team and chaired by the CEO, to ensure overall governance of compliance within the Group.

2016: Automated anti-corruption screening tool for supplier and other business partners implemented and third party due diligence process improved.

2017: Assessment of the Group’s anti-corruption program by external counsel appointed by the Board, with suggestions how to improve the program further.

2017: Regional Compliance Offices and Business Partner Review Boards established in every region.

2017: Ethics and Compliance vetting process now reviews ethics and compliance-related behaviour of senior leaders.

All Ericsson employees must acknowledge that they have read and understood the Code of Business Ethics at the time of employment and in global acknowledgement processes approximately every second year. The first acknowledgment process took place in 2004. In 2015, 99% of the employees acknowledged the CoBE and the 2017 process is currently ongoing.

Inquiries from SEC and DoJ

Since March 2013, Ericsson has been answering questions from the United States Securities and Exchange Commission and the United States Department of Justice regarding our compliance with the U.S. Foreign Corrupt Practices Act in multiple regions. This is a voluntary cooperation by Ericsson. As we have stated before, it would be inappropriate to give further comments about the ongoing investigation.

However, we can confirm that as a natural part of the investigation, Ericsson employees in different positions and with different areas of responsibilities have been interviewed to assist the investigation. During the four years since the investigation was initiated, approximately 25 Ericsson employees have been interviewed by or have presented to the authorities. This has included also a few members of the Executive Team as well as staff from different functions and different regions who in their different capacities have knowledge of processes, policies and facts.

We have been voluntarily cooperating with the US authorities throughout the process and will continue to do so.

Vetting of senior leaders

In 2017, Börje Ekholm underlined the importance of compliance and business ethics when introducing a vetting process for appointing his new Executive Team. All members of the current Executive Team have been vetted and President and CEO Börje Ekholm has full confidence in his Executive Team.

In addition, the vetting process covers some 100 employees in exposed positions. This includes key employees within sourcing, customer facing roles, finance etc. All future recruitments to these positions will go through mandatory vetting. In designing the process Ericsson has drawn on external counsel to ensure a best-in-class and robust process.

The comprehensive vetting process is designed to address ethics and compliance concerns involving for example: deviations from company policies, directives, and instructions on key areas such as gifts, entertainment, dealings with third parties, travel, manual payments, use of cash, dealings with agents and consultants, use of company resources and expense reports, other forms of potential improper conduct or deviations from the Code of Business Ethics (e.g., sexual harassment, conflicts of interest, deviations from laws and regulations).

After completed vetting a compounded view of the candidates/employees will make the basis for any recruitment or promotion decisions. The outcome of the vetting is part of the decisions together with traditional performance potential and leadership reviews.


Comment regarding article about breaches of Ericsson’s Code of Business Ethics

September 12, 2017

On September 12, Svenska Dagbladet published an article stating that some 80 employees left Ericsson in 2016, following breaches of the company’s Code of Business Ethics. Below are the questions received from Svenska Dagbladet, and the answers Ericsson provided:

Ericsson has been working with business ethics and compliance for a long period of time. In 2011, Ericsson formalized its compliance program, under the management of a Chief Compliance Officer, who reports to the Chief Legal Officer, and has since then strengthened the program incrementally. This applies to both the structure and the execution of the program, as well as follow-up and how it is implemented in the organization.

Do you have any new comments about the ongoing investigation conducted by the SEC and the DOJ?

Ericsson has since 2013 voluntarily cooperated with inquiries from the United States Securities and Exchange Commission and the United States Department of Justice regarding its compliance with the U.S. Foreign Corrupt Practices Act. The investigation is ongoing and we have nothing new to add.

How many employees had to leave Ericsson last year because they did not follow the code of conduct?

Ericsson has a Code of Business Ethics which all employees are required to follow. When we discover violations of the Code, we take action. This could be, for instance, warnings, loss of pay, or termination of contract. In connection to the Annual General Meeting in March 2017, Ericsson communicated that 86 employees had left the company in 2016 due to violations of the Code of Business Ethics.

How many left in 2014 and 2015 because they did not follow the code of conduct?

2016 was the first year in which we gathered consolidated information regarding compliance with the Code of Business Ethics.

How many have been forced to leave because of the above reasons so far this year, what kind of positions have they had and does it differ from previous years?

We compile this kind of statistics on a yearly basis and therefore still have no figures for 2017. We intend to compile it at the end of the year and publish this in the Sustainability & Corporate Responsibility report.

Can you be fired if you have violated the code of conduct earlier, but the violation is discovered several years later?

Yes.

What violations of the code of conduct have been the most common in 2016 and so far this year?

In an appendix (GRI report) to our Sustainability & Corporate Responsibility report we disclose statistics about violations reported through our whistle blower program (Ericsson Compliance Line) and other channels. We also disclose the categories of the reported violations. In 2016, 145 violations were reported, distributed as follows:

• 29% related to fraud, corruption & regulatory breach

• 1% related to security issues

• 11% related to operations issues

• 49% related to human resources issues

• 10% related to conflicts of interest

Does Ericsson notify the police if an employee commits a suspected breach of local law? Breach of Swedish law, eg child pornography?

We assess the specific case at hand and Ericsson has filed police reports, and will file police reports, against employees who have violated laws in the countries they work. But we underline that it is an assessment of each individual case.

Violation of law is a broad term (from speeding to serious violent crimes) and we assess how serious the violation is and our obligations under law and the possibility to prosecute in the country in question.


Comment regarding speculations in media about cost savings

September 7, 2017

Ericsson has previously communicated that a key component in the company's focused business strategy is to reduce costs and increase efficiency. In connection with the Q2 report 2017, Ericsson communicated that the company, in light of the current market outlook, will accelerate the planned actions to ensure that the target of doubling the 2016 operating margin beyond 2018 can be met. Actions will be taken primarily in service delivery and common costs, but do not include R&D. The plan is to implement cost savings with an annual run rate effect of at least SEK 10 b. by mid-2018, of which approximately half will be related to common costs.

Ericsson has not communicated which specific units or countries that could be affected. It is too early to talk about specific measures or exclude any country. As Ericsson executes on these plans to save costs, the company will communicate this, and to what extent employees could be affected.


Comment regarding payments from LCM Alliance LLP

September 6, 2017

Following reports about Ericsson receiving four payments in 2013 from a company called LCM Alliance LLP, the company wants to make the following comment:

Ericsson has investigated if these payments from 2013 are related to a contract and a customer and concluded that this is the case. Our customer has used a payment service provider, but why the payments ultimately came from the entity in question is still unknown to us.

Ericsson is a global company with customers in 180 countries and the company receives a great number of payments from different countries and in different currencies. It is challenging to fully control all incoming payments – anyone can pay amounts to accounts without the account holder's prior approval – but we do reconcile and allocate payments received to issued invoices so that we know when an invoice has been paid. In case a payment cannot be allocated to an invoice we would contact the sender to clarify the matter.

Ericsson is currently working on further improving the reconciliation and allocation ways of working, in order to achieve a more effective system for detecting and validating payments from senders with whom Ericsson has no contractual relationship, i.e. unknown senders, so that we can flag them to our banks.

Ericsson works closely with our banks in these respects. Ericsson supports anti-money laundering measures and the legal controls that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities.


Comment regarding speculations in media about cost savings program

August 16, 2017

In an article published by Svenska Dagbladet on August 16, it is speculated that Ericsson is planning a substantial cost savings program. Following the article, Ericsson wants to make the following comment, which is the same information that we sent to Svenska Dagbladet:

Ericsson has previously communicated that a key component in the company's focused business strategy is to reduce costs and increase efficiency. In connection with the Q2 report 2017, Ericsson communicated that the company, in light of the current market outlook, will accelerate the planned actions to ensure that the target of doubling the 2016 operating margin beyond 2018 can be met. Actions will be taken primarily in service delivery and common costs, but do not include R&D. The plan is to implement cost savings with an annual run rate effect of at least SEK 10 b. by mid-2018, of which approximately half will be related to common costs.

Ericsson has not communicated which specific units or countries that could be affected. It is too early to talk about specific measures or exclude any country. As Ericsson executes on these plans to save costs, the company will communicate this, and to what extent employees could be affected.


Comment regarding allegations of insider information

June 1, 2017

There have been allegations in certain media that Leif Johansson had access to insider information prior to his acquisition of Ericsson shares on May 12, 2017. The company therefore wishes to make the following clarifications:

We have a process in which board members contact the company's Chief Legal Officer prior to any trading in the Ericsson share to assess if inside information or other obstacles to the transaction are present. In this case it was concluded that no such obstacles were present and consequently the transaction was carried out.

Leif Johansson is a longtime Ericsson shareholder. As Chairman of the board, he believes it is important to have personal ownership in the company. Leif Johansson bought additional shares in early May. This occurred in the wake of the company's presentation of a new strategy and the report for the first quarter. As mentioned above, it was concluded that there was no obstacle to Leif Johansson increasing his shareholding on May 12.

Ericsson has robust processes in place to protect sensitive information. When the company received information that Cevian Capital intended to notify the authorities about its shareholding in accordance with current rules, Ericsson established a logbook in accordance with applicable rules.

 


Comment regarding alleged corruption in South Africa

December 19, 2016

In an article in Svenska Dagbladet on December 19, it is alleged that Ericsson is under scrutiny for alleged corruption in relation to a contract with City of Johannesburg. Following the article, Ericsson wants to make the following comment:

In 2010 Ericsson and CitiConnect won an RFP with the City of Johannesburg for a so-called BOT contract (Build, Operate and Transfer) regarding the deployment of fiber networks. In this cooperation, Ericsson performed services for CitiConnect, who was the contracting party to the City of Johannesburg. In 2014, City of Johannesburg, terminated the agreement with CitiConnect, because the timetable had not been kept. After the termination followed an arbitration process between the City of Johannesburg, CitiConnect and Ericsson, which was concluded in 2015.

In connection with the termination of the contract an independent third-party audit was conducted and concluded that the value of the network was largely the same as the amount of the corresponding portion of the contract. We are aware that there have been reports in local media that this is not the case.

The project with the City of Johannesburg was the only time we have collaborated with CitiConnect. Our customers&squo; operations and ownership is nothing we can comment; these are questions that should be addressed directly to them.

We have previously communicated that we cooperate with US authorities and are answering a number of questions related to the Foreign Corrupt Practices Act and related areas. We have also said that we cannot go into details about the questions, as it could affect or interfere with the work of the authorities.


Comment regarding media report about alleged briberies in Africa

December 17, 2016

In an article in Svenska Dagbladet on December 17 it is alleged that Ericsson has used ‘middlemen’ to pay extensive bribes to executives in one of Ericsson’s customers in Africa. Following the article Ericsson wants to make the following comment, which is the same comment we gave to Svenska Dagbladet:

Without having received information about which specific ‘middlemen’ it is referred to, we can say that Ericsson, like many other global companies, has used sales agents around the world, which has been a well-established way of doing business in the telecom industry. However, in recent years, Ericsson has phased out the use and today we use sales agents to a significantly lesser extent, for example in markets where it is a legal requirement.

We take any allegations about corruption in relation to our business seriously, and we do not agree with the allegations of widespread briberies. When we get indications that misconduct or violations of our Code of Business Ethics may have occurred, we investigate them and take action where necessary. We cannot comment in detail which potential investigations Ericsson conducts around the world, but we report our overall work in our annual Sustainability and Corporate Responsibility report.

When we get questions from authorities in various countries, including the US, we always cooperate with them. However, we cannot go into detail about such questions as it could affect or interfere with the work of the authorities. For this reason, we cannot provide any details about the questions we have received from US authorities, and we can neither confirm nor deny specific countries or regions. We have previously communicated that the questions are related to the Foreign Corrupt Practices Act.

Ericsson has zero tolerance for bribery and corruption, and we are conducting extensive work to ensure compliance with Ericsson's guidelines. At the same time, we have a global operation with about 115,000 employees, which makes it difficult for us to guarantee that individual employees never violate our guidelines and principles. We work continuously to strengthen our processes and to ensure we have a strong culture around these issues, and have done so for many years.

Related Links:

Sustainability and Corporate Responsibility report, 2015
Standing strong on anti-corruption


Comment to media reports about hearing of Ericsson employee

November 23, 2016

In an article in Svenska Dagbladet on November 23 it is said that Ericsson employees have been called for hearing in the US. Following the article, Ericsson wants to make the following comment:

Ericsson has previously communicated that we are cooperating with US Authorities and are responding to a number of questions on a voluntary basis. As part of this process, it is natural that employees of the company are interviewed.

Ericsson does not provide any detailed comments about requests from authorities as it could interfere with their work. It is also against Ericsson’s policies to disclose the names of individual employees in these situations.

As a listed company, we always follow the requirements to publicly disclose any information about events that would have a material impact on the company or its finances. Should such materiality arise, Ericsson will disclose information in accordance with regulatory requirements.


With regards to a documentary in Swedish Radio November 23, 2016

November 23, 2016

The radio documentary refers to a period of 15-20 years ago when Ericsson used sales agents to a greater extent than today. Ericsson has, like many other companies that are active on an international market, used the services of sales agents. To engage well established and knowledgeable sales agents has been a significant competitive advantage. This approach can be attractive because it can be far more cost effective than building up a large local sales organization.

Several of the events are related to a payment system called World Wide Commission Scheme (WCS), that Ericsson took into use in 1998 to manage payments to sales agents. The system proved to be difficult to control and was therefore terminated already in 2001. The company continued to use commercial agents in a more controlled way, but nevertheless began to phase out the use of sales agents in 2008. Today there are a few remaining sales agent agreements, for example in countries where sales agents are a legal requirement.

Ericsson has repeatedly reported on the World Wide Commission Scheme (WCS). We also note that the WCS was investigated and tried in a court of law in conjunction with a case of tax evasion. The District Court (2006) and the Court of Appeal (2008) acquitted all the defendants. The court had not discovered any inaccuracies in our accounting or had objections to our business procedure related to WCS. In the documentary it is also mentioned an alleged payment to the President of Costa Rica in 1999. Now, 17 years later, Ericsson has not found any further information on this matter.

Ericsson disagrees with the claims made in the Swedish media that the company would have used bribes in a deliberate and systematic way. We cannot guarantee that individual employees have never, or will, act in violation of our Code of Business Ethics. What we can do is to make sure we always take appropriate action when we have information proving wrong-doing. Ericsson has a zero tolerance policy for corruption and bribery and take these matters seriously.

For more information on Ericsson's anti-corruption work


Comment to article about alleged conflicts of interest in relation to supplier, 2016-11-22

November 22, 2016

In an article in Svenska Dagbladet on November 22 allegations are made about potential conflicts of interest concerning former Ericsson employees and a local supplier in South East Asia. Following the article Ericsson wants to make the following comment:

According to Ericsson’s Code of Business Ethics, employees must avoid conflicts of interest. If an Ericsson employee has a position or ownership in an external entity, which could give rise to a conflict of interest, the employee must report this to his or her manager or Ericsson’s legal function, who then assess the situation. Ownership in a supplier could be a conflict of interest and should be reported in this way. If that doesn’t happen, it is a breach of our policies and guidelines.

Ericsson continuously work to ensure our suppliers meet high social, ethical, human rights and environmental standards. In our sourcing process the companies are evaluated on a number of criteria, including ownership. We continuously gather information from our suppliers to discover potential issues or misconduct.

What we can say regarding this specific case is that the supplier in question has been screened in accordance with our sourcing process and that no red flags have been raised. If conflicts of interest have existed without being reported in accordance with our directives, it is serious and a breach of our Code of Business Ethics.

Read more about Ericsson’s sourcing processes here.


Ericsson’s chairman interviewed in Swedish radio

October 12, 2016

In a 30-minute long interview from Friday, October 7, Ericsson’s chairman Leif Johansson answers questions from Swedish Radio (Sveriges Radio Ekonomiekot) about the latest developments in Ericsson. Note that the interview is in Swedish. The following link will take you to the website of Swedish Radio.


Comment regarding speculations on employee reductions in Sweden, 2016-09-21

September 22, 2016

In 2014 the Company communicated a cost and efficiency program aimed at securing annual cost savings of 9 billion SEK during 2017. This program is progressing according to plan, but is not yet finished.

On July 19, 2016, the Company announced further actions to reduce costs. This means a doubling of the previously announced savings of operating expenses of 4.5 billion SEK (i.e. not a doubling of the entire savings and efficiency program), in order to reach a reduced run rate of operating expenses (excluding restructuring charges) of 53 billion SEK during the second half of 2017. This can be compared to 63 billion SEK for the full year 2014.

As previously communicated on several occasions, these measures mean a reduction of the number of employees worldwide. We have large operations in Sweden which are not excluded. As we always do for any employee reductions, we will handle this on a country-by-country basis and our employees and, where applicable, union representatives will always be informed first.


Executive remuneration overview

September 7, 2016

Ericsson applies the same remuneration principles globally. These are outlined in our Annual Report 2015 (p. 160), and are the principles of performance, competitiveness and fairness.

When it comes to the executive management team, the decisions around remuneration levels is set by the Board’s Remuneration Committee which is guided by the remuneration guidelines approved the shareholders on a yearly basis at the Annual General Meeting and adherence is verified by the company’s external auditors on an annual basis.

The consists of four Board members appointed by the Board, including an employee representative. In addition, the Remuneration Committee is supported by an independent remuneration advisor.

Ericsson is operating in a worldwide industry, where competition for market share as well as for competence is global. As a company, Ericsson believes it is important to have a diverse executive management team consisting of different nationalities and background. Ericsson also believes it is important to have members of the executive management team placed in locations which are important for Ericsson’s development, including, but not limited to Stockholm and Silicon Valley.

Like taxation systems, public benefits and costs of living, remuneration levels and compositions also vary in different parts of the world. A company with an executive management team consisting of different nationalities, based in different locations, will see an impact on the cost for the executive remuneration. In order to be able to attract strong talent in different geographies, remuneration needs to be adjusted in line with each country’s situation, the company’s situation and the availability of good talent.

The ability to move individuals in line with business needs is of vital importance to Ericsson and currently there are about 800 employees on so called expatriate contracts, or long term assignments. While we have a standard policy on how such contracts are set up, the number of possible combinations of home and host countries, family situations and other factors means that expatriate contracts can look very different.

Where Ericsson requests individuals, including the executive management team, to move on such long term assignment, the company provides certain benefits, including housing, in the host country. The housing benefit are determined and limited by location, seniority and family size. If an employee on an expatriate contract selects more expensive housing, the additional cost is borne by the individual.

Remuneration is ultimately a matter resolved at an individual basis. As a principle, Ericsson does not comment on the remuneration, or other employment conditions of individual employees, beyond the public information covering the remuneration of the CEO and the executive management team in the Annual Report 2015 (p. 97).

Related links

Remuneration Report
The auditor's statement regarding compliance with the Guidelines for remuneration to Group Management



Comment regarding article in Svenska Dagbladet about Ericsson’s accounting, 2016-07-17

July 18, 2016

In an article in Svenska Dagbladet published yesterday on the newspaper’s website, it’s alleged that Ericsson’s accounting is inflated, according to the newspaper’s sources.

The company consequently wants to make the following comment:

  1. The claim that Ericsson in a wrongful way has reported income in its accounting is not correct
  2. The claim that the company has changed the definition of net cash to “embellish” the numbers is not correct
  3. The claim that it is “inexplicable and abnormal” for the company to tie up more capital even when the sales are decreasing is wrong.

The company’s auditors, Price Waterhouse Coopers, go through all financial statements and quarterly reports in line with the accounting standard ISRE 2410, and gives a formal Auditor’s report for the full year financial statement.

Additional details on these claims are found below, in the form of information from the company’s annual report and quarterly reports.

Ericsson’s quarterly report for the second quarter is presented on Tuesday July 19, at about 07.30.

1. The claim that Ericsson in a wrongful way has reported income in its accounting is not correct. The principle for revenue recognition is described in the company’s annual report in note C1, Significant accounting policies, p. 63 and onwards

Revenue is recognized when risks and rewards have been transferred to the customer, with reference to all significant contractual terms, when:

  • The product or service has been delivered
  • The revenue amount is fixed or determinable
  • The customer has received and activation has been made of separately sold software
  • Collection is reasonably assured

Estimations of contractual performance criteria impact the timing and amounts of revenue recognized and may therefore defer revenue recognition until the performance criteria are met. Regarding frame agreements and longer services contracts, the following applies: Distribution and/or accrual related to criteria for delivery-type contracts, ie contracts that relate to delivery, installation, integration of products and provision of related services, normally under multiple elements contracts. Under multiple elements contracts, accounting is based on that the revenue recognition criteria are applied to the separately identifiable components of the contract.

2.The claim that the company has changed the definition of net cash to “embellish” the numbers is not correct. Information from Q1-2016 report, page 24

The definition of Net Cash has been adjusted in order to more clearly represent Ericsson’s ability to meet financial obligations. Post-employment benefits will no longer be included in the calculation of Net Cash. Net Cash for prior periods has been recalculated using the new definition. The revised definition is as follows: Net Cash: Cash and cash equivalents plus short-term investments less interest-bearing liabilities (which include: non-current borrowings and current borrowings).

This definition is also more in line with how most other companies define their net cash.

We can also add that our Auditor’s report is available on page 129 in the Annual report 2015

All information to calculate the earlier definition of net cash is available in the company’s quarterly reports.

3. The claim that it is “inexplicable and abnormal” for the company to tie up more capital even when the sales are decreasing is wrong. Working capital is to a large degree impacted by the business mix where a high proportion of large projects, primarily network coverage projects, tie up more capital than for example software sales, which tie up less capital. This is also what happened in the first quarter with a business mix with a high proportion of coverage projects. Capital tied-up is a function of business mix and sales volumes.

Related links

Annual Report, 2015

Q1, 2016 Report



Greek investigation into contract from 1999

June 19, 2016

Ericsson (NASDAQ:ERIC) informs about an investigation in Greece relating to a defense agreement signed in 1999.

Greek authorities have, for a period of time, conducted investigations into arms deals in the Greek defense sector. One investigation involves an agreement in which Ericsson Microwave Systems delivered an airborne radar system to Greece. The contract was signed in 1999. The company reports incidents of corruption annually as part of its Sustainability and Corporate Responsibility disclosures. Ericsson commented publicly on this case more than two years ago, including in conjunction with its Annual General Meeting.

Ericsson Microwave Systems was sold by Ericsson in 2006. Company records, agreements and documentations were handed over as part of the sale.

Recently, as part of the ongoing investigation, seven current and former Ericsson employees have been served with summons in preliminary investigation proceedings by a Greek prosecutor involving allegations of possible corruption.

Ericsson has not been contacted by any authority in this matter.

The current and former Ericsson employees have not yet been provided with the full relevant documentation from the investigation, and have not yet been questioned by the Greek prosecutor.

Since an investigation is on-going, where present and former employees have been served, it is not appropriate for Ericsson to comment further on the substance of this matter.

Ericsson works actively with its anticorruption program, and has a strong Code of Business ethics which is acknowledged by all employees at the time of employment and repeatedly throughout the term of employment. Ericsson has zero tolerance for corruption and bribery, and we work actively to prevent any kind of corruption within the Group, for example through anticorruption training for both employees and suppliers. We report transparently on our efforts annually in our Sustainability and Corporate Responsibility Report, which includes our GRI reporting, where we report in incidents of corruption and actions taken.

Ericsson will continue to follow this case closely and will cooperate with authorities, as appropriate.

Press release


Related links

Sustainability and Corporate Responsibility report, 2015

Standing strong on anti-corruption



Ericsson comments on recent media reports on questions concerning corruption

June 17, 2016

In March 2013, Ericsson (NASDAQ:ERIC) received a voluntary request from US Authorities to answer a number of questions relating to Ericsson's operations, something we have also confirmed to media in 2013. Ericsson cooperates with US Authorities to answer these and additional questions.

While we strive to at all times conduct our business in compliance with applicable laws, matters do arise from time to time as a result of the global nature of our business.

We will not provide any detailed comments on the request as such, but can say that it relates to Ericsson's anti-corruption program and questions related to the Foreign Corrupt Practices Act. Ericsson cooperates with US Authorities and works diligently to answer the questions.

As a listed company, we always follow the requirements to publically disclose any information about events that would have a material impact on the company or its finances. Should such materiality arise, Ericsson will disclose information in accordance with regulatory requirements.

Press release

Related links

Sustainability and Corporate Responsibility report, 2015

Standing strong on anti-corruption