Human rights impact in myanmar A responsible approach to business in a complex market MYANMAR UNEARTHING THE HIDDEN GEM Myanmar Ericsson background › We provide: > Communication networks > Services to network operators > Enablers to service providers › Customers in more than 180 countries › 40% of the world’s mobile calls pass through our networks › ~110 000 employees worldwide › 135 years in the telecoms market Ericsson Internal | 2015-05-25 | Page 3 Our legacy Background › Board decision in Q1 2012 › Company established in Q2 2012 › 2013 activities – Establishment of office – Recruitment of 50 local engineers – International telecom license tender – Contract with Telenor › Today – Organization of 350 whereof 60 fully employed by E/// – Supply equipment for 50% of Telenor network – Installing and operating 100% of the Telenor network Ericsson Internal | 2015-05-25 | Page 5 2 pronged approach in Myanmar and Iran Socioeconomic study Human Rights Impact Assessment › › Framework for ensuring respect for human rights within business operations › Avoid complicity in any unintended use of products, services or solutions › Identify actions to mitigate risks A forward looking study on the incremental impacts of 3G, showing the benefits Ericsson Internal | 2015-05-25 | Page 6 Ericsson Internal | 2015-05-25 | Page 7 HRIA Process › Decision by the Sales Compliance Board to conduct a HRIA in Myanmar (spring 2013) › Ongoing processes throughout the years › Shift provided guidance on the development of the HRIA › Involved many different internal Ericsson stakeholders › Stakeholder consultations important input Ericsson Internal | 2015-05-25 | Page 8 Human Rights Impact Assessment process and outputs Inputs • Ericsson: experience industryexamples and pre-reading • Shift: tools and process 9 Process • Internal Ericsson workshop in Myanmar, August 2013 Initial Outputs • Impacts Matrix • Prioritized Map Verification • Stakeholder consultation by Ericsson to test/verify findings Final Outputs Next Steps • Final prioritized • Identification/ map of implementation potential of measures to human rights mitigate the impacts risks Impact Matrix Company Workers Network Rollout Sourcing Managed Services Local Hiring Other Activities Other Activities Ericsson Internal | 2015-05-25 | Page 10 Supply Chain Workers Consumers and Users Local Commun ities Potentially Vulnerable or Marginalized Groups Other Relevant Groups Possible RISK AREAS identified › Corruption – Myanmar ranks high on all indices › Labor / civil works (avoidance of overtime, forced labor, child labor) › Health and safety › Business partners (and relation to governments) › Ethnic discrimination and land use/land grabbing › Privacy, surveillance, freedom of internet/expression › Misuse of lawful intercept by government forces › Security crackdown on public protests Ericsson Internal | 2015-05-25 | Page 11 Myanmar - mitigation priorities Local awareness of human rights issues Sourcing and suppliers Managed services Network rollout Lawful interception › Within each area mitigation activities have been identified and actioned. › Local stakeholder consultation in Myanmar July 2014 ‒ Issues raised at this consultation were labor conditions and safety (particularly in the supply chain), Telecom legislation, effective community engagement strategies, local recruitment and complaints mechanisms Ericsson Internal | 2015-05-25 | Page 12