Ericsson
 | |
| Type | publicly traded |
|---|---|
| Founded | 1876 (Stockholm, Sweden) |
| Founder(s) | Lars Magnus Ericsson and Carl Johan Andersson |
| Headquarters | Stockholm, Sweden |
| Area served | worldwide |
| Key people | Michael Treschow (Chairman); Sverker Martin-Lof (Deputy Chairman); Marcus Wallenberg (Deputy Chairman); Carl-Henric Svanberg (President, CEO, and Director); Hans Vestberg (EVP and CFO)[1] |
| Industry | telecommunications |
| Products | telecommunications and networking equipment |
| Services | managed services, consulting and education, systems integration and customer support[2] |
| Revenue | 29.35 billion USD (2007)[3] |
| Operating income | 3.615 billion USD (2007)[3] |
| Net income | 3.459 billion USD (2007)[3] |
| Employees | 74,011 (2007)[1] |
| Website | http://www.ericsson.com |
From Hoover's Online: "Ericsson opens all lines of communication. The world's leading maker of mobile broadband infrastructure provides the equipment that telecom service providers use to build and expand networks. The company also provides wireline broadband, metro-area Ethernet, and optical transport equipment. Ericsson's joint venture with Sony, Sony Ericsson Mobile Communications, ranks among the top providers of mobile handsets. The company is controlled by two groups: Investor AB, the investment vehicle for the Wallenberg family, and AB Industrivärden, which control 19% and 13% of the voting power respectively."[1]
Contents
Company History
Ericsson was founded by Lars Magnus Ericsson and Carl Johan Andersson in 1876 as a mechanical engineering shop which came to provides its own telegraph receivers to Swedish railway companies.[4] Within a decade, the company had expanded to 70 employees from the original five, and it began producing telephones and related equipment.[5]Ericsson was a multinational company by the time of World War I, with its most important overseas plants in Russia and the UK.[6]
Historical Financial Information
Business Strategy
Ericsson "vision and values"
"Vision and Core Values" accessed July 2008</ref>:
"Our vision
To be the Prime Driver in an all-communicating world.
This means a world in which all people can use voice, data, images and video to share ideas and information whenever and wherever they want."
"Core values
Respect, professionalism and perseverance are the values that are the foundation of the Ericsson culture, guiding us in our daily work - how we relate to people and how we do business."
Political and Public Influence
Political Contributions
Lobbying
By summer 2008, Ericsson, Inc., hired the lobbying firm Clark and Weinstock for $100,000.[7] That figure was $220,000 in 2007 and $240,000 in 2006.[8][9]
Corporate Accountability
Labor
Ericsson is a customer of Volex Cable Assembly Co., Ltd. "Volex is a global producer of electrical and optical fiber cable assemblies and power cords (plugs, cables and connectors)" which "operates offshore manufacturing facilities in Asia, Europe, and North and South America. In Asia, the Volex Group currently has three manufacturing facilities based in mainland China (in Zhongshan, Shenzhen, and Suzhou), and factories and/or offices in India, Indonesia, Singapore, Thailand, Japan, Korea, Malaysia, Vietnam, Taiwan, and Hong Kong. In total, the group manages over 30 production centers worldwide."[10] According to a May 2008 Report published by SACOM and Bread for All, the Volex factory in Zhongshan City, China, found that the factory employs 1500-2000 workers, and that while workers' overtime still exceeded the monthly legal limit by up to 84 hours a month, this figure was less than up to 140 hours of mandatory overtime per month employees worked in 2006.[11] In addition to work days that last a minimum of twelve hours (with two 45 minute breaks), workers are not given any days off during peak production times.[12] Occupational health and safety are problems at the Volex plant, where workers' hands often become swollen and blistered from handling cables and are not given any sort of protective gloves.[13] The past policy of deducting meal charges of 102 yuan per month from workers' wages whether or not they ate in the canteen is no longer in effect.[14] Volex management reported that the EICC has been presented to workers in 2007, but as of the beginning of 2008 workers did not claim any knowledge of either its contents or their implementation.[15]
Human Rights
Environment
Consumer Protection and Product Safety
Anti-Trust and Tax Practices
Social Responsibility Initiatives
When Ericsson began moving much of its manufacturing operations to Asia in 1998, it developed an extensive Supplier Responsibility Code detailing safety requirements, fair and honourable business practices, human rights, workers rights, and child labor, as well as monitoring and compliance practices.[16] However, Ericsson is still not a member of the EICC as of May 2008.</ref>.[17]
Business Scope
The reach of Ericsson's telecommunications networks is vast, accounting for 1000 networks in 175 countries and 40% of all mobile phone calls. Ericsson holds over 23,000 patents, and through its joint venture Sony Ericsson produces mobile handsets in addition to the networks maintained by the parent company.[18]
| Customers | Suppliers | Creditors | Competitors |
|---|---|---|---|
| Customer 1 | Volex | Creditor 1 | Competitor 1 |
| Customer 2 | Supplier 2 | Creditor 2 | Competitor 2 |
| Customer 3 | Supplier 3 | Creditor 3 | Competitor 3 |
| Customer 4 | Supplier 4 | Creditor 4 | Competitor 4 |
Financial Information
Ticker Symbol: ERIC
Main Exchanges: NASDAQ
Investor Website: http://www.ericsson.com/ericsson/investors/index.shtml
| Shareholder | % Total Shares held |
|---|---|
| Brandes Investment Partners L.P. | 14.06% |
| Tradewinds Global Investors, LLC. | 11.22% |
| Primecap Management Company | 10.36% |
| Lazard Asset Management LLC | 6.75% |
| Vanguard/Primecap Fund | 6.02% |
| Vanguard/Windsor Fund Inc. | 4.91% |
| North Road Capital Management, LLC | 4.59% |
Largest Shareholders[19]
Geographic scope paragraph
| Country | Revenue | Profits | Assets | Employees |
|---|---|---|---|---|
| Country 1 | Revenue 1 | Profit 1 | Assets 1 | Employees 1 |
| Country 2 | Revenue 2 | Profit 2 | Assets 2 | Employees 2 |
| Country 3 | Revenue 3 | Profit 3 | Assets 3 | Employees 3 |
| Country 4 | Revenue 4 | Profit 4 | Assets 4 | Employees 4 |
Governance
| Board Member | First Elected | Holdings in Ericsson | Other Affiliations | |
|---|---|---|---|---|
| Michael Treschow | 2002 | 820,043 Class B Shares | ABB Ltd and the Knut and Alice Wallenberg Foundation | |
| Marcus Wallenberg | 1996 | 710,000 Class B shares | AstraZeneca PLC; Stora Enso Oy; the Knut and Alice Wallenberg Foundation; FAM-Foundation Asset Management | |
| Sverker Martin-Lof | 1993 | 52,000 | Skanska AB; Svenska Cellulosa Aktiebolaget SCA; SSAB | |
| Roxanne S. Austin | 2008 | None | Abbott Laboratories; Teledyne Technologies Inc.; Target Corporation | |
| Sir Peter L. Bonfield | 2002 | 22,000 Class B shares | Mentor Graphics, Inc.; Sony Corporation; TSMC | |
| Borje Ekholm | 2006 | 108,803 Class B shares | Investor AB; AB Chalmersinvest; Husqvarna AB; Scania; KTH Holding AB | |
| Ulf J Johansson | 2005 | 32,176 class B shares | Jump Tap Inc | |
| Nancy McKinstry | 2004 | None | The American Chamber of Commerce, the Netherlands, TiasNimbas Business School | |
| Anders Nyren | 2006 | 33,428 class B shares | Association of Exchange Listed Companies; Association for Generally Accepted Principles in the Securities Market; Sandvik AB; Svenska Handelsbanken; Svenska Cellulosa Aktiebolaget SCA; AB Industrivarden; Skanska AB; SSAB; Ernstromsgruppen | |
| Carl Henric Svanberg | 2003 | 15,781,966 class B shares | Sony Ericsson Mobile Communications AB; Assa Abloy AB; The Confederation of Swedish Enterprise; Melker Schorling AB; Uppsala University | |
| Monica Bergstrom | 1998 | 4,757 class B shares | None | |
| Anna Guldstrand | 2004 | 4,723 class b shares | None | |
| Jan Hedlund | 1994 | 2,040 class B shares | None | |
| Pehr Claesson | 2008 | 1,628 Class B Shares | None | |
| Kristina Davidsson | 2006 | 3,401 Class B Shares | None | |
| Karin Aberg | 2007 | 4,877 Class B Shares | None |
Board of Directors[20]
Contact Information
Company name: Telefonaktiebolaget LM Ericsson
Company address: TORSHAMNSGATAN 23, KISTA
164 83 STOCKHOLM
SWEDEN
Phone: +46 8 719 00 00
Fax: +46 8 18 40 85
Articles and Resources
Books on the Company
- Leif Johansson - chair
Related SourceWatch Articles
Sources
- ↑ 1.0 1.1 1.2 Hoover's Online: Telefonaktiebolaget LM Ericsson Factsheet accessed July 2008
- ↑ Ericsson Business Offerings accessed July 2008
- ↑ 3.0 3.1 3.2 "Yahoo! Finance Annual Data" accessed July 2008
- ↑ Ericsson History: 1876 accessed July 2008
- ↑ "Ericsson History:1886" accessed July 2008
- ↑ "Ericsson History: 1916" accessed July 2008
- ↑ Open Secrets: Ericsson, Inc. 2008 accessed July 2008
- ↑ Open Secrets: Ericsson, Inc. 2007 accessed July 2008
- ↑ [http://opensecrets.org/lobby/clientsum.php?year=2007&lname=Ericsson+Inc Open Secrets: Ericsson, Inc. 2006
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 37.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 37-8.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 38.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 39.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 40.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 40.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling: Critical Issues in the Mobile Phone Industry SOMO: Centre for Research on Multinational Corporations, November 2006. p. 51.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 43.
- ↑ "Ericsson in Brief" accessed July 2008
- ↑ "Yahoo! Finance" accessed July 2008
- ↑ Ericsson Board of Directors accessed July 2008
External Resources
External Articles
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