Harri Leinikka: Reputation Will Determine the Industry’s Future
The technology industry has shown how to turn the sector’s reputation around—and how this benefits all companies in the industry, writes Harri Leinikka, CEO of Reputation and Trust Analytics.
An industry’s reputation has a significant impact on the success of its companies. It is not merely a side issue but a strategic asset that influences nearly all critical factors of business: the industry’s reputation as an employer, access to financing, the level of regulation—and customer demand.
Young people and career changers are drawn to and train for industries with a good reputation. A skilled workforce is critical to the industry’s development, because without it, there can be no innovation, growth, good customer service, or competitiveness. When an industry’s reputation suffers, the best talent goes elsewhere. When the reputation is good, the industry attracts talent and builds its future.
Investors and financiers also take the industry’s reputation into account when making decisions. In an industry with a good reputation, startups can secure funding more easily and on better terms. Established companies can obtain financing at reasonable rates. An industry with a poor reputation, on the other hand, has to pay a higher price for capital—or, in the worst case, funding dries up entirely.
Reputation also influences how society regulates different industries. When trust in an industry is high, there is room for self-regulation. When reputation plummets, regulation and taxation can tighten rapidly. The payday lending industry lost its reputation, and legislation tightened drastically right away. The media, on the other hand, enjoys extensive self-regulation precisely because of its good reputation.
Customers also adapt their spending habits based on an industry’s reputation. An industry with a good reputation receives support even in challenging times—customers remain loyal and understand temporary challenges. An industry with a poor reputation is left to fend for itself in a crisis.
The Story of the Technology Industry: From Long-Term Commitment to Results
So how can we improve our reputation? Reputation&Trust shows that the Technology Industry has done the best work in Finland over the long term. Its reputation has risen from a low level to a good level, and this year, for the first time, the overall perception of corporate responsibility among companies in the sector was rated as good.
This remarkable achievement did not happen on its own. It required investments, actions, and active communication on the part of the Federation of Finnish Technology Industries, but also the commitment of companies across the entire industry: an industry association cannot achieve this alone. I remember well when Wärtsilä’s then-Head of Communications gathered his colleagues a decade ago and, together with the industry association, mobilized his entire network to get to work. It was great to see that even the industry’s then-low-profile companies committed to the effort. Building a reputation also required setting goals and annual monitoring, as well as the courage to experiment and learn. This meant participating in events, being active on social media—and the courage of industry employees to share their own experiences.
Reputation management requires the courage to be open
Building a reputation is not just about communication; it requires concrete actions and transparency. The industry must also have the courage to address uncomfortable questions and criticism in a constructive manner. When the energy industry had to explain price spikes or the forest industry had to explain logging, those who succeeded best were the ones who openly explained the rationale behind their actions and listened to their stakeholders.
It is important to understand that every company in the industry contributes to—or undermines—the sector’s collective reputation through its own actions. A single major scandal can damage the entire industry’s standing for years to come. Conversely, the bold actions of pioneers in the areas of corporate responsibility or innovation can elevate the entire sector.
Measurement drives progress
As the example from the Technology Industry Association shows, systematic reputation measurement is essential. Without regular monitoring, it is impossible to know whether actions are yielding results, whether a change in direction is needed, or which aspects of reputation are most influential. However, measurement must not become an end in itself—the data must guide strategic choices and concrete actions.
- The best results are achieved when the industry:
- Set clear, measurable goals
- Committed to long-term work – rapid upward turns are rare
- Involve the entire ecosystem and companies in the industry
- Track its reputation annually among various stakeholder groups: the general public, the media, decision-makers, and educational institutions
- Be willing to try new channels and methods
- Makes results transparent and learns from failures as well
Reputation is not a cost but an investment
Many Finnish industries are undergoing a transformation. Climate change, digitalization, and geopolitics are changing the rules of the game. Although the Finnish economy does not yet show signs of growth, competition for talent and capital is intensifying internationally. Those industries that understand reputation as a strategic asset and invest in developing it now have the best chances of succeeding in the future. Reputation is not a cost. It is an investment that pays for itself many times over: through better recruitment, more affordable financing, greater operational freedom, and stronger customer relationships.
The author is Harri Leinikka, CEO of Reputation and Trust Analytics.
