Rising costs rip into business reputation
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Business reputation is eroding due to consumer concerns about rising costs, according to this year's Axios Harris Poll 100, which assigns reputation scores based on seven categories like trust, products and services, vision and culture.
Why it matters: Companies that have kept costs low while standing firm on their corporate values rank highest on this year's list.
State of play: Trader Joe's, the low-cost grocer known for being values-focused, ranks No. 1 on the list and saw a 3.5-point increase in its reputation score since last year.
- Costco ranks in the top 5, and Arizona Beverage Co., known for its 99-cent iced tea, joined the list for the first time, coming in at No. 7.
The big picture: Consumer sentiment is in free fall, according to a new University of Michigan report.
- Inflation expectations are higher than those reported in 2022, with respondents pointing to tariffs as potentially inflationary and economically damaging.
- This comes amid Treasury Secretary Scott Bessent's acknowledgement on Sunday that some consumer prices will likely rise due to tariffs.
By the numbers: Spiraling consumer sentiment is likely to impact business reputation and favorability, according to the Harris Poll survey.
- 78% of Americans have noticed the increasing costs of groceries.
- Meanwhile, 4 in 10 Americans say their overall opinion of companies is declining, with most pointing to inflation as the top reason.
- However, those surveyed also say that companies with strong values are better protected from reputational damage.
What they're saying: The companies ranking highest on the list are "delivering value through their values," says John Gerzema, CEO of the Harris Poll.
- "Americans have shifted their attention almost singularly toward inflation and high prices. And so now, corporate reputation is make or break on allyship: Are they looking out for my bottom line or theirs? The companies that are thriving [this] year are intentional, empathic and most of all, dependable."
Zoom in: Clear and consistent corporate values can serve as a safety net, according to the survey.
- Costco (No. 5) made headlines for upholding its commitments to diversity, equity and inclusion, while Patagonia (No. 2) is known for its pledge to fight climate change.
- Meanwhile, companies that are viewed by consumers as leaning toward one political ideology — like Ben & Jerry's (No. 24) or Chick-fil-A (No. 26) — rank highly.
Zoom out: Potential price increases threaten the reputation of budget-friendly companies like Dollar Tree (No. 75), Dollar General (No. 85) and Spirit Airlines (No. 100), per the rankings.
- Both dollar stores anticipate disruptions or added costs brought on by President Trump's tariff policies, while Spirit Airlines has introduced premium fares.
- Meanwhile, Chinese e-commerce companies like Temu (No. 90) and Shein (No. 94) are particularly exposed to tariffs, dropping in score to sit in the ranking's bottom 10%.
What to watch: While corporate leaders are signaling potential price increases due to Trump's trade policies, few have publicly opposed the tariffs.
- According to the Harris Poll survey, more than half of Americans say their opinion of companies would improve if they spoke out against tariffs.
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