Friday September 16th, 2016 / by admin / In

Finns’ trust in corporations declining

Kone is the most reputable enterprise in Finland, according to the latest iteration of T-Media’s annual Reputation&Trust survey. The other two organisations in the top three are Supercell and Fazer. A comparison of data over several years reveals that there is a downward trend in trust towards enterprises in Finland.

An evidence based reputation advisory, T-Media has been analysing the reputation of enterprises operating in the Finnish market for more than ten years. A data pool of over 18,000 organisation appraisals, collected over the last four years, indicates a decrease in citizens’ trust towards large enterprises active in the market.

The two dimensions of reputation that have the largest impact on trust are responsibility and governance – the latter pertaining to an organisation’s transparency and the way it operates.

“In these critical areas, businesses have not been able to improve their operations and enhance their dialogue with the civic society at the same rate that citizens’ expectations have grown, says Jirimiko Oranen, CEO, T-Media Relations. “The chasm between what the general public considers acceptable and how enterprises are seen to behave is getting wider, which is alarming.”

In a worst-case scenario, diminishing trust can result in the loss of a firm’s social license to operate.

”Losing the social license to operate can be fatal. Just picture a taxi driver losing their driver’s license. It’s hard to do business when the operational environment takes away your business permit,” Oranen says.

“Reputation is an area where many Finnish companies play into the hands of their global competitors. To a great number of global leaders, reputation is business-critical IP, and a key element of competitiveness. A lost reputation has a negative impact on a firm’s ability to make profit, whereas companies with a good reputation attract talent, get capital at better rates, win customer recommendations, and enjoy the support of society,” Oranen concludes.


OP SURGING – NORDEA NOSE-DIVING

Reputation&Trust 2016 Awards, with Frida Johansson of Supercell (left), Max Alfthan of Kone, Leena Majamäki from Fazer, and keynote speaker Leena Mörttinen of the Family Business Network in Finland. Photo: Niko Jekkonen.

The most reputable firm in Finland, in 2016, was Kone, with Supercell in close tow. Iconic Finnish companies Fazer and Fiskars took places three and four.

”The top four shows that Finns appreciate identifiable ownership and a family way of doing business,” says Harri Leinikka, CEO, T-Media. “Consumer cooperatives have also managed to take a place close to the top, with OP Group, Valio and S-Group occupying positions five to seven.”

“In the financial sector, however, an interesting development is taking place. Financial group OP is surging as the fifth most reputable company in Finland, whereas Nordea is nose-diving, now the fifth most disreputable enterprise in the market,” Leinikka says.

”Typically, the reputation of an industry sector should go in the same direction. For instance, Stora Enso and UPM, much vilified in the past, have managed to exit the disreputable list. In the financial sector, we now see diverging paths.”

“OP has manged to avoid the negative impact of the Panama scandal, and it has benefited from being Finnish, and a consumer cooperative. Nordea’s drop is of historic magnitude in the reputation dimension of governance, referring to openness, transparency and appropriate conduct.”

The findings are based on the Reputation&Trust survey, executed in June-July 2016. The survey assesses enterprises in eight dimensions of reputation: governance, financial performance, leadership, innovation, dialogue, workplace, responsibility, and products and services. 4,264 Finns participated in this year’s Reputation&Trust survey.

TOP 10 MOST REPUTABLE

Reputation score Change from previous year
1. Kone 4.22 0.07
2. Supercell 4.20 0.22
3. Fazer 3.85 0.03
4. Fiskars 3.69 New
5. OP Ryhmä 3.65 0.10
6. Valio 3.59 0.00
7. S-ryhmä 3.57 0.01
8. Alko 3.52 -0.08
9. Lidl 3.51 -0.06
10. Neste 3.41 0.01

 

BOTTOM 10 DISREPUTABLE

Reputation score Change from previous year
1. Talvivaara 1.55 -0.04
2. Caruna 2.17 New
3. Posti 2.63 -0.02
4. Nestlé 2.66 -0.03
5. Microsoft 2.73 -0.17
6. Nordea 2.74 -0.46
7. Nokia 2.78 0.00
8. VR 2.82 -0.12
9. Shell 2.93 New
10. Stockmann 2.96 0.02

 

Further information

Harri Leinikka
CEO, T-Media Oy
040 505 5001
harri.leinikka@t-media.fi

Jirimiko Oranen
CEO, T-Media Relations Oy
040 756 6655
jirimiko.oranen@t-media.fi

T-MEDIA OY

EVIDENCE BASED REPUTATION ADVISORY

ETELÄINEN MAKASIINIKATU 4 A, 00130 HELSINKI

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