Reputational Threats and Controversial Issues: Comparing Reputation Management Approaches in Three State-Owned Enterprises

This study examines how state-owned enterprises (SOEs) manage reputational threats related to morally controversial issues. Analyzing three Norwegian SOEs—Norsk Tipping, Equinor, and Kongsberg Gruppen—over 2002–2023, we identify three distinct reputation management approaches: mitigation, translation, and symbolism. The findings show that the SOEs adopt reputation management approaches aligned with norms of appropriateness. Specifically, they show that Norsk Tipping emphasizes mitigation to address concerns about gambling harms, while Equinor and Kongsberg Gruppen use symbolic and translational approaches to manage broader, evolving controversies related to fossil energy production and defense industry activities. Contrary to expectations, the approaches do not become more complex over time but remain stable and refined. We explain these patterns through the Logic of Appropriateness and discuss implications for reputation management theory and government ownership policy.