Telefonaktiebolaget LM Ericsson (publ)
OM : ERIC B
2018 Information & Communications Technology
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Company Ranking
11 out of40 Companies
Company Score
SUMMARY
Telefonaktiebolaget LM Ericsson (publ) (Ericsson) ranks 11th out of 40 companies, disclosing more information on its forced labor policies and practices than its peers on all themes except recruitment and with a particularly high score for purchasing practices. Its score has decreased since 2016 as the company seems to have taken limited additional steps to strengthen its performance and disclosure. It has, however, disclosed that in addition to undertaking country-specific human rights impact assessments, it also works to understand the geographic risks of modern slavery and maps supplier categories in relation to such risks. The company achieved the third highest score on purchasing practices and is one of only five companies to disclose a statement that is compliant with the UK Modern Slavery Act’s minimum requirements. Further, the company discloses timebound targets on modern slavery. Ericsson has an opportunity to improve its performance and disclosure on the themes of commitment and governance, recruitment, and worker voice.
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SCORE HISTORY
THEME & indicator score
The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labour from their supply chains. The themes are comprised of a total of 12 key indicators. For each indicator, a company can score a total of 100 points.
Commitment and Governance
This theme evaluates a company's commitment to addressing forced labor, supply chain standards, management processes and board oversight, training programs, and engagement with stakeholders.
| Commitment | 100 / 100 |
| Supply Chain Standards | 70 / 100 |
| Management and Accountability | 100 / 100 |
| Training | 50 / 100 |
| Stakeholder Engagement | 0 / 100 |
Traceability and Risk Assessment
This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information, and assesses and discloses forced labor risks across its supply chains.
| Traceability and Supply Chain Transparency | 12.5 / 100 |
| Risk Assessment | 100 / 100 |
Purchasing Practices
This theme assesses to what extent a company adopts responsible purchasing practices and integrates supply chain standards into supplier selection and supplier contracts. It also assesses the degree to which a company cascades their standards down its supply chains.
| Purchasing Practices | 15 / 100 |
| Supplier Selection | 100 / 100 |
| Integration into Supplier Contracts | 100 / 100 |
| Cascading Standards Through the Supply Chain | 100 / 100 |
Recruitment
| Recruitment Approach | 0 / 100 |
| Recruitment Fees | 0 / 100 |
| Monitoring and Ethical Recruitment | 0 / 100 |
| Migrant Worker Rights | 50 / 100 |
Worker Voice
This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.
| Communication of Policies | 100 / 100 |
| Worker Voice | 0 / 100 |
| Freedom of Association | 0 / 100 |
| Grievance Mechanism | 40 / 100 |
Monitoring
This theme evaluates a company's process for auditing suppliers (including whether it performs non-scheduled visits, reviews relevant documents such as wage slips or contracts, interviews workers, and audits lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.
| Auditing Process | 30 / 100 |
| Auditing Disclosure | / 100 |
Remedy
This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains which occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.
| Corrective Action Plans | 75 / 100 |
| Remedy Programs and Response to Allegations | 0 / 100 |