— We are willing to help in many ways, whatever we can now do. I think perhaps the most important thing we can do is help and create jobs and get involved in the communities we are present in, as best we can. We are trying to do that, says Börje Ekholm about how Ericsson is acting to overcome the wave of violence.
He believes business can play a big role in the long term.
— But here I think a discussion with politics is also needed. What is the action plan? he asks himself.
— It’s not entirely different from how it looked in New York in the 1980s and 1990s. There, you got the right side of it, and there was probably quite a lot of political effort – which is basically needed, he adds.
One of Sweden’s largest employers
Ericsson – with headquarters in the Kista district of Stockholm – is one of Sweden’s largest employers with around 14,500 employees of over 100 nationalities around the country.
— The health and safety of our employees is absolutely the most central thing for us at Ericsson. At present, we may not see any direct impact on us, says Ekholm.
— But it is clear that if this continues any longer, there will be increased uncertainty for our employees. There will be employees who may not dare to go to work in the same way they have done before. But we are not quite there today, he adds.
He plays down the effects of the wave of violence on the image of Sweden abroad so far, and has seen no obvious problems in continuing to attract attractive personnel to the country.
– The acts of violence in Sweden are of course very worrying and something we must do something about. It is an important issue for Sweden to deal with. But at present it has not affected the image of Sweden in any significant way. It is clear that today there is a discussion about it and this continues without us doing anything about it – then I think it can affect the image of Sweden.
“Very worrying situation”
At the same time, the Ericsson manager is concerned about what will be the geopolitical consequences of the terror-labeled organization Hamas’s attack on Israel on October 7. It has rapidly exacerbated the conflict in the area, claimed thousands of lives, and could potentially draw countries such as Iran and the United States into the fray.
— We have roughly 200 employees in Israel, who are naturally affected. They are safe today and in good health. But it is clear that this is a very worrying situation.
— How this will affect in the long run is hard to say. It depends on how long it lasts and what it will look like. It is difficult to tell. But today I would say that there has been a very small impact (on Ericsson).
“This is what we have to do”
Business-strategically, the increased geopolitical tensions in the world – around Ukraine, Taiwan and other hot spots – must be managed. And it costs money, a price that must be paid, according to Ekholm.
— As early as 2018–2019, we decided that we will create a more diversified supply chain. We have invested for that ever since, to ensure that we have what we call “geopolitical resilience”, so that we can handle different types of geopolitical risks in the best possible way.
— It is clear that for us it has meant cost increases, which we have borne during this time and continue to bear. But this is what we must do. One has to look at the geopolitical scenario and try to manage the risks that may come.