Ericsson CEO Börje Ekholm has allies in the right places amid a sprawling and recently resurfaced corruption and bribery crisis. Ronnie Leten, chairman of Ericsson’s board of directors, today said Ekholm has the full confidence of the board.

This crucial support includes Ekholm’s performance as CEO and “in regard to the ethical and compliance transformation of the organization, which he continues to lead,” Leten said in a statement. 

The timing is also critical because some shareholders and advisory firms have called for Ekholm’s removal heading into Ericsson’s annual general meeting later this month. 

“While Ericsson since 2017 has taken significant steps in improving the culture of ethics and compliance, further efforts are underway to help ensure that the company operates at all times ethically and with integrity including in relation to the current issues before the Department of Justice,” Leten said. 

The Swedish radio access network vendor also announced the hiring of Scott Dresser as its chief legal officer, a role that calls for him to lead ongoing investigations into some employees' unethical conduct in Iraq.

Ekholm recently admitted to a continued pattern of “hugely embarrassing” and “unacceptable misconduct” uncovered during an internal investigation that discovered multiple incidents of bribery and corruption in Iraq between 2011 and 2018. 

The company can’t unequivocally deny that bribes paid by some employees during that period ended up in the hands of the Islamic State.

Ericsson claims the pattern of corruption and criminal activities were in the past, but it faces a crisis of trust on that assertion. 

The company knowingly withheld this information from the public, and authorities it appears, in late 2019 while it reached a $1.06 billion settlement with the Justice Department related to a 17-year period of similar wrongdoing in six other countries. At the time, it claimed those breaches of the U.S. Foreign Corrupt Practices Act ended in early 2017. 

Ekholm earlier this month claimed Ericsson’s new compliance efforts that were put in place in 2017 and 2018 helped detect a suspicious expense claim in Iraq that subsequently uncovered substantial ethical lapses and corruption.

Ekholm took charge of Ericsson in early 2017. Current Verizon CEO Hans Vestberg led Ericsson between 2010 and mid-2016 when he abruptly resigned following several underperforming quarters. Vestberg’s predecessor Carl-Henric Svanberg ran the company from 2003 to 2009.

During a press conference earlier this month, Ekholm said he’s been cleaning up bad behavior every day since he started in the role. That also means the company uncovers more misconduct, he added. By encouraging employees to speak up when wrongdoing is seen or heard, Ericsson has experienced a six-fold increase in internally reported concerns since 2016, according to Ekholm.

“This process is ongoing and we will act promptly to address shortcomings or misconduct identified. The company continues to coordinate with the DOJ and other relevant authorities,” Leten said.

He declined to provide any further information. Ericsson’s annual general meeting is scheduled for March 29.