IKEA is Sweden's most reputable company; Tesla takes the biggest hit

IKEA remains the most reputable company in Sweden. The Chinese clothing company Shein ranks last. This is according to the latest study by Reputation and Trust Analytics, which reveals how Swedes rate companies’ reputations. Tesla has fallen the most, followed by Spotify, which was second on the list last year and is now tied for seventh place. At the bottom of the list, with the lowest reputation, is a newcomer: the construction company SBB.

The average reputation score has dropped this year, which is likely due to the current global situation.

– This is partly due to a more pessimistic outlook on everything, and partly because companies must do more to earn our trust. This is the fifth consecutive year the survey has been conducted, and the trend is clear. People are looking for security and transparency rather than risk-taking and innovation. This is reflected in the companies that make it to the top of the list. Reputation is becoming increasingly important for companies’ long-term success, says Helene Foxberg, Senior Advisor at Reputation and Trust Analytics.

Affected by conflicts

IKEA’s reputation declined slightly in 2023 but remains by far the strongest in Sweden. Spotify’s reputation has fallen significantly and now ranks in a tie for seventh place, but Tesla has suffered the biggest decline.

– When the first survey in Sweden was conducted in 2019, Tesla had a good reputation. Last year, it was the sixth most reputable company in Sweden. Its rating has plummeted in the wake of the contract dispute and declining trust in Elon Musk, and it is now on the list of companies with the lowest reputation, says Ingrid Landahl, founder of Comma, a firm specializing in crisis management and corporate communications.

The top and bottom lists are based on the companies that spontaneously come to mind when respondents are asked which companies operating in Sweden have a good or poor reputation. Respondents are then asked whether they would consider applying for a job at the company, investing in it, or purchasing its products and services. In this way, the relationship between reputation, stakeholder behavior, and the company’s long-term competitiveness can be measured.

Responsibility is the aspect of reputation that has the greatest impact on the behavior of the Swedish public.

– The annual survey shows that sustainability continues to grow in importance among the Swedish public. Companies need to become even better at communicating their sustainability efforts while striking the right balance so that they aren’t accused of greenwashing, Landahl says.

The top list includes three non-consumer companies: ABB, Scania, and a newcomer, SKF.

– It’s clear that we’re proud of our industrial companies in Sweden because they’re spontaneously mentioned in the survey and receive high ratings. It also shows that people can form a strong connection with a company they don’t encounter in their daily lives as consumers. That connection is based more on what people read and hear about the company, says Landahl.

SBB is a newcomer at the bottom

Among the ten lowest-ranked companies, there are three newcomers: SBB ranks 28th at the bottom of the list, following financial difficulties and media attention; Lundin Energy is once again on the list of lowest-ranked companies, despite a new focus on renewable energy and a name change to Orrön Energy AB, which suggests that this information has not reached the public.

H&M has also ended up at the bottom of the list, although the company’s reputation is only average.

At the very bottom is the Chinese fashion company Shein, and just above it is PostNord, which has remained at roughly the same level since 2019.

– A poor reputation affects factors such as sales, the ability to recruit, and the ability to attract investors. It simply makes it harder and more expensive for a company to operate, says Helene Foxberg.

Methodology

Reputation and Trust Analytics uses a data-driven methodology to map companies’ reputations and analyze how they influence stakeholder behavior. The analysis of companies in the Swedish market is the fourth in the series and is based on 3,509 Swedes who spontaneously selected the companies they believe have a high or low reputation. Through 7,928 completed surveys, the respondents then ranked these companies’ reputations across eight dimensions, including leadership, innovation, and responsibility. They were then asked to what extent they are willing to support the company, such as by purchasing products and services, investing, or seeking employment. This establishes a measurable link between reputation and the ability to operate in the market.

Contact:

Helene Foxberg, Senior Advisor, Reputation and Trust Analytics
+46 73 556 6926
helene.foxberg@reputationandtrust.com