Introduction
Ericsson is a Swedish company that leads in providing telecommunication and other related services in the world. It is a large company rendering services to mobile and the Internet providers in the world. This report contains LM Ericsson’s recommendations to the Local Network regarding principles 1 and 9 of the Global Compact. Principle 1 deals with human rights, and it states that any occupation has to should hold up and revere the security of globally exalted human rights1. Principle 9, on the other hand, advocates for the expansion and distribution of the inventions that are friendly to the surroundings2. These two principles are paramount and should be the focus of the Local Network for future development.
Business Practices
LM Ericsson joined the United Nations Global Compact in 2000, and it is an active member since then. It strives to stay in line with 10 Global Compact principles. The company strives to be the leading provider of telecommunication services through respect and professionalism. The company practices perseverance and integrity as its core values in building a culture of protecting human rights. The company provides genuine services to customers and ensures that its numerous employees throughout the globe work as a team. The company supports and upholds internationally proclaimed human rights through its Ericsson Response3.
The company, through its communication networks, works to avert disasters when they occur. Volunteers at Ericsson Response work at developing mobile communications with humanitarian agencies to support relief work during disasters. This business practice achieves compliance with principle 1 of protecting human rights.
The company uses a life cycle approach in reducing environmental impact4. The life cycle approach details the environmental impacts of the company’s products from their raw materials to the decline stage of the product. This process offers a complete picture of the company’s value chain and shows the areas where the company pollutes the environment most. The products of the company have a long life and, therefore, Ericsson seeks to reduce its environmental impact in their life cycle. Analyzing the product from its initial stage gives crucial information on reducing pollution.
Another business practice of the company to develop environmentally friendly technology is through its transformative solutions. The company is seeking to intervene in the transport sector to reduce carbon dioxide emissions. Through its ICT innovations, Ericsson developed a mobile technology that informs drivers about traffic, specific routes to use and the weather conditions. This system avoids many movements for drivers, ensuring a low-carbon environment5.
Ericsson also works with the smart grid transformation to ensure that power generation plants reduce their emissions. This technology involves transmitting information on electricity usage, pricing signals and distant control of smart devices. Ericsson uses its vast experience in developing these smart devices that are adaptable to the power generation industry. In return, the smart devices control the number of emissions to the environment in the power generation process. Through these practices, Ericsson complies with principle 9.
Positive and negative lessons
The Ericsson Response has a positive impact on the lives of the survivors. The volunteers at the Response work tirelessly to ensure that enough communication with those in need. The company utilizes its skills and expertise to save lives in the event of a disaster6. Ericsson, therefore, acts as a role model to other companies on how they should act in an emergency. The negative lesson from this practice is that the company acts only after a disaster occurs. It would be better if the company developed a technology that can predict a disaster before it occurs.
The life cycle approach is an excellent way of determining stages at which the company’s operations pollute the environment most. This enables the company to take action early enough and avoid pollution, thereby having a conducive environment. However, the company’s products have an unusually long life of over 15 years, which could be a defect for the company7. The time horizon is too long, for the products and employees may ignore several stages in the cycle, making the approach less effective in controlling emissions.
The transformative solutions in transportation and smart grids have markedly reduced carbon dioxide emissions. These environmentally friendly technologies encourage other companies to emulate them in an effort to reduce emissions. However, the company is focusing on a few sectors, yet there are other sectors polluting the environment.
Business practices recommendations
The following recommendations will help to improve compliance with principles 1 and 9 of the Global Compact:
- The company should continue collaborating with other humanitarian agencies to respond to disasters before and when they occur. This partnership will create support and respect for human beings and their rights.
- The company should shorten the life of its products. A short life cycle will ensure monitoring of the product and utterly dealing with environmental impact8. The life cycle approach should be among the objectives of the company.
- The company should target more sectors of the economy that are significant polluters of the environment. Adopting technologies that reduce movements such as teleconferencing are exceptional measures to achieving a low environment. The ICT sector can achieve this because it is a leader in such technologies.
Benefits, challenges and implications
Key stakeholders will benefit from the recommendations in a variety of ways. The community will have an improved lifestyle since there is a quick response to disasters9. The environment shall be sustainable benefiting members of the local network. There shall be a greater quality of life as the transformative solutions seek to reduce congestion in areas of work.
The challenge with the new, environmentally friendly technologies is that conservative people could reject them as they maintain their status quo. It will be an added expense if the company decides to shorten the products life cycle.
The implication of adopting transformative solutions for companies is that their business operations will change to adopt the new technologies10. This will take time, especially for businesses that are not technologically perceptive. The Local Network should analyze the above proposals and give the best feedback depending on findings derived from the analysis.
Bibliography
Ericsson. Enabling a low-carbon economy, 2011. Web.
Ericsson. Ericsson Response: 10 years of disaster relief efforts, 2011. Web.
Ericsson-press release. Cision Wire, 2008. Web.
Ericsson. Reducing our environmental impact, 2011. Web.
Ericsson. Sony Ericsson Mobile Communications established today. Press release, 2001. Web.
Ericsson. “Ericsson wins $1.7 deals with Chinese operators.” Wall Street Journal, 2009. Web.
Meurling, John, and Richard Jeans. The Ericsson Chronicle: 125 years in Telecommunications. Stockholm: Informations forlaget, 2000. Web.
Perhrsson, Anders. International Strategies in Telecommunications. London: Routledge Research, 1996. Web.
The Ten Principles. United Nations Global Compact, 2011. Web.
United Nation Global Compact. Alcoa, 2011. Web.
Footnotes
- The Ten Principles. Web.
- United Nation Global Compact. Alcoa, 2011. Web.
- Ericsson: Ericsson Response: 10 years of disaster relief efforts. Web.
- Ericsson. Reducing our environmental impact. Web.
- Ericsson. Enabling a low-carbon economy. Web.
- Ericsson-press release, Cision Wire. Web.
- Perhrsson, Anders. International Strategies in Telecommunications. London: Routledge Research, 1996. Web.
- Meurling, John, and Richard Jeans. The Ericsson Chronicle: 125 years in telecommunications. Stockholm: Informations forlaget, 2000. Web.
- Ericsson. “Ericsson wins $1.7 deals with Chinese operators.” Wall Street Journal, 2009. Web.
- Ericsson. Sony Ericsson Mobile Communications established today. Press release, 2001. Web.