Corporate Social Responsibility: An Examination of the Performance of Lm Ericsson

Corporate social responsibility:

An examination of the performance of LM Ericsson

There has been no shortage of the heated discussion on the company's social responsibility issue in the modern business world. Consumers are now becoming more sensitive and demanding to the social performance of these organizations. This social performance not only includes good mankind, but also the whole economic and environmental aspects. Since those companies operate their businesses, they must fully consider the three aspects and their code of conduct and mission statement should firmly conform to the ten principles of the UN Global Compact (see UN Global Compact 2011).

Just like many multinational organizations, Ericsson has been recognized as a leading provider of telecommunications facilities and services to mobile and fixed network operators internationally. There are more than 1,000 networks allocated in 180 countries and it takes up 40 percent market share globally (Company Facts 2011). However, although Ericsson has made the great contribution to the environmental aspect such as enabling a low-carbon economy, reducing environmental impact and facilitate people to communicate around the world (Ericsson: Sustainability and Corporate Responsibility 2011), the company still has been criticized on social human right and any other issues.

This paper mainly examines how the Ericsson has performed socially responsible and sustainable in relation to the Environmental aspect; and also analyzes the failure in social aspect-child labor scandal and its negative impact on the society.

It examines their misconduct on Child labor case thereby causing negative social performance

Case for Ericsson

Ericsson fully utilizes its life cycle method and Design for Environment (DfE) techniques to point out and reduce negative environmental impact. The company's LCA (Life cycle assessment) approach has illustrated what environmental impacts of their products have from raw material extraction, manufacture, transports and end-of-life treatment (Reducing our environmental impact 2011).

It has been indicated in its Company's Sustainability Report that the CO2 emission with the products has reduced from 19 to 18 Mtonnes in one year (2009-2010); in the meantime, the direct CO2 emission from in-house activities reduced 0.64 Mtonnes. Ericsson aims at the two categories (delivered products' life-time operation and in-house activities) to minimize the carbon intensity by 10 percent yearly (Reducing our environment impact 2011)

In 2009, Ericsson built up the carbon footprint reduction objective for these two categories. After one year later, Ericsson has achieved its target of 10 percent CO2 reduction for in-house activities annually and 14 percent reduction for delivered products. The Company has acknowledged that the direct emissions from in-house activities cause an increase because of the component shortages and increased employees, thus, it fails to reach the target reduction of direct emissions but will take more concern in this area in 2011 (Reducing our environment impact 2011)

Moreover, Ericsson has concentrated on the green innovation in the researches and design for its products and services. Its 3E concept (enhance performance, energy management and end-user value) combines with Design for Environment working practices have reduced and will continue to expect to reduce the carbon footprint of its products for 40 percent by the end of 2013. Ericsson' DfE (design for environment) strategy has mitigated the negative impact of environment from the products' life cycles, and efficient Ericsson's DC-DC converters also can decrease the energy consumptions and environmental impact (Ericsson recognized for environmental excellence with second E-legacy award 2010).

Furthermore, it can be said that there is few industries that can take the transition to a new low-carbon economy like Ericsson-the ICT industry, which could reduce almost 100 percent of carbon emissions from other industries and sectors, for example, energy production, transport or construction (Enabling the low-carbon economy 2011)

Ericsson has attempted to discover the new opportunities to apply energy-smart transport solutions, which include Carbon-smart Commuting, connected car, eCall and electric vehicle charging. For some reason, according to apply ICT-based innovation to transport modes (air, water, road and rail), this innovative transport systems can facilitate people in the working time and make transport more efficient as well as reduce the CO2 emissions (Enabling the low-carbon economy 2011)

Needless to say, Ericsson is doing the right thing and has performed its business socially responsible and sustainable on Environmental aspect; it is indeed in line with UN Global Compact with environmental principles. This achievement not only brings the huge long-term profitability and brand equity for Ericsson itself, but also values all the stakeholders in many aspects, in particular, the product-users. Ericsson provides a healthy, green and sustainable environment to the stakeholders