Supplier Code of Conduct Audit Program
Ericsson has a long history of running supplier Code of Conduct audits and up until December 2016, they were being run by internal auditors.
In 2017, the decision was made to outsource this to a 3rd party, with the intention to bring additional unique expertise, obtained through extensive audit activities throughout various industries, which supports and affirms our Responsible Sourcing Strategy, as well as enhanced credibility towards customers, investors and other stakeholders, a more consistent and thorough audit process, and the use of a modern database tool for enhanced transparency and analytics capabilities.
A Supplier Code of Conduct on-site audit looks at all aspects of our Code, including but not limited to Environmental and Occupational Health and Safety requirements. Every year approx. 200 Code of Conduct Audits are performed, by means of interviews, factory or site visits, and discussions with employees, which are crucial parts of every audit.
Contract Compliance audit program
In the Contract Compliance audit program, we verify supplier’s compliance to agreements signed with Ericsson. It covers all contractual binding areas in the agreement, Code of Conduct is one of those. Since this is Ericsson agreement specifics, these audits are performed by internal auditors. The audits help Ericsson to identify areas for improvement and help suppliers comply with the criteria.
Ericsson has several audit criteria: general criteria for all suppliers and specific criteria applicable depending on type of supplier. The criteria originate from several sources: demands and expectations from customers, shareholders, legislations, policies and standards such as ISO 9001 and ISO 14001. The audit process is developed to follow the rules and guidelines in ISO 19011, Guidelines for auditing management systems. Evaluation of the criteria are done through self-assessment and on-site audit.