New Data Exposes Reputational Chasm Between Love for Technology Products and Growing Concern About Technology Business Practices

NEW YORK and SAN FRANCISCO, Oct. 25, 2021 /PRNewswire/ -- While technology was pivotal in making commerce possible and fueling key elements of people's lives during the COVID lockdown, the reputation of technology companies did not see a boost. A new study exposes a reputational chasm between positive attitudes toward technology and a growing skepticism and increased scrutiny of technology companies' business practices, from both enterprise purchasers and consumers. Three-quarters (74%) of the general public say they like having technology in their life but distrust big tech companies. Among enterprise IT B2B buyers, a company's commitment to ensuring ethical use of technology makes nearly 9 in 10 (87%) more likely to purchase their products.

The Ketchum 2021 Social Permission and Technology Study, the third conducted by global communications consultancy Ketchum, revealed serious challenges for the tech industry in a comprehensive look at enterprise IT buyers and business leaders, employees, consumers and society.

In addition to ethical use of technology, enterprise IT buyers and business leaders say reputational elements such as commitment to data privacy (86%) and support for eco-friendly product lifecycles, such as product trade-ins (83%), rank very high in their purchase considerations.

"B2B companies operate within a broad, highly connected ecosystem that is greatly affected by consumer and public perceptions – B2B is really B2B2C," said Melissa Kinch, managing director and portfolio leader, Technology and Food, Agriculture & Ingredients, at Ketchum. "If you are a B2B tech brand, understand that your customers' decision-making is affected by how consumers view your company and its values. You aren't selling in a B2B bubble. Making a commitment to ethical use of technology and data privacy – and backing that with actions – is critical." 

Hiring managers take note: more than half (56%) of employed Techruptors – a group Ketchum identifies as influential technophiles who tend to be leading indicators when it comes to tech trends and changing perceptions – say they have considered leaving their job because their company is not committed to the ethical use of technology. 

But there is a bright spot: the growing scrutiny of tech companies means that business leaders and IT decision makers also notice positive actions by tech brands. According to the survey, 75% of B2B leaders have noticed tech companies promoting STEM programs for students, and a similar percentage (76%) have noticed tech companies promoting STEM upskilling/reskilling programs for adults.

Like the Tech, but Distrust the Big Tech Companies

The data shows that 72% of B2B leaders say they like having technology in their life but distrust big tech companies, similar to 74% of the general public. When asked who is most responsible for ensuring tech is used ethically, 45% of B2B leaders say it's the companies that provide the underlying technology – more than double the number (22%) who believe it's the companies that sell end products or services using the technology.

"Despite tech's role in solving problems large and small during the pandemic, both consumers and enterprise buyers say they like the products but not so much the companies who make them. What we're seeing isn't a reputational gap – it's a chasm," said Lisa Sullivan, managing director, Technology, at Ketchum. "As one of the most powerful and influential industries in the world, tech now shoulders the blame for many of our societal ills. Brands whose actions clearly align with their stated values have a real opportunity to rise above the current mistrust and build incredible brand equity across all their stakeholder audiences." 

Americans Grow Concerned About Tech's Impact on Mental Well-being

Roughly half of Americans (49%) say they are worried the use of technology is impacting their mental state and 42% say they feel worse about technology's involvement in their lives since the pandemic began. Techruptors and B2B leaders are even more likely to feel the negative impacts from tech: 60% of Techruptors and 57% of B2B leaders worry it's affecting their mental state and nearly half (48% of Techruptors, 46% of B2B leaders) feel worse about tech since COVID began.  

Gamers – a group that embraces technology willingly – are the most concerned, with 64% saying they are worried about the use of technology impacting their mental state. 

"The pandemic is showing us that people's capacity for using technology in work and daily life is not infinite," said Sullivan. "The burnout that arose is an indicator of how a tech brand's key audiences -- business decision makers and Techruptors – will react long-term as technology becomes increasingly pervasive. Our industry needs to look around corners on topics such as mental health impact." 

Blaming Tech for Society's Problems? Gender Concerns, Digital Chasm and Political Division Are Top of Mind

The tech industry's issues with gender inequality have been widely publicized. However, those workplace issues might just be the most visible signs of a much deeper problem about women and their general feelings toward technology. The study found that women tend to be much less enamored with technology than men, with one-third (33%) saying they are not glad they were born in a time where we have a lot of technology, compared to just 1 in 5 men (20%).  

In addition, women (54%) are significantly less likely than men (70%) to say they are comfortable with how technology companies handle their personal data, and fewer women than men (52% vs. 63%) trust tech companies will handle data ethically. 

The study also suggests that the digital divide is becoming a chasm, with digital technology actively fueling social, political and economic divisions. Three-quarters (76%) of Techruptors, 82% of B2B leaders and 70% of the general public agree tech companies are helping bridge the digital divide during the pandemic, but they expect tech companies to do even more. Those surveyed say it's not just that tech companies aren't doing enough to address the problems they are creating; in some cases, they are actively and knowingly making things worse.

For example (see full report for general public and business decision makers' results): 

• 76% of Techruptors and 75% of IT decision makers believe social media has fueled the anti-vaccine movement 
• 74% of Techruptors and 74% of IT decision makers believe Big Tech has fueled political division in the past year 
• 65% of Techruptors and 69% of IT decision makers believe the tech industry is driving income inequality 
• One in three people (33%) believe technology played a negative role in the 2020 U.S. presidential election
• One in four people (26%) believe technology has played a negative role in the social justice movement

About the Ketchum 2021 Social Permission and Technology Study
Ketchum's Analytics team conducted the third Ketchum Social Permission and Technology Study, an online survey of 2,000 total respondents, between July 19 and July 23, 2021. This includes 1,000 adults age 18+ in the United States, nationally representative of the U.S. population as it relates to age, gender, region and race/ethnicity, as well as 1,000 adults who qualify as business leaders and/or IT decision makers. The margins of error for the consumer sample and the B2B sample are both +/-3 percentage points at the 95% confidence level. Smaller subgroups will have larger error margins.

Download the full report at ketchum.com/Techruptor.

About Ketchum
The winner of 131 Cannes Lions and PRovoke's Global Creative Agency of the Year, Ketchum is the most creatively awarded firm in our industry. We're equal parts human-centered and business-focused, empathetic and intelligent. As a global communications consultancy, we combine the deep industry and specialty expertise of boutique firms with global reach to find unexpected connections that lead to lasting relationships and work that matters. For more information on Ketchum, a part of Omnicom Public Relations Group, visit www.ketchum.com.

About Omnicom Public Relations Group
Omnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, marketing to women, global health strategy and corporate social responsibility. It encompasses more than 6,300 public relations professionals in more than 370 offices worldwide who provide their expertise to companies, government agencies, NGOs and nonprofits across a wide range of industries. Omnicom Public Relations Group delivers for clients through a relentless focus on talent, continuous pursuit of innovation and a culture steeped in collaboration. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC) that includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare, customer relationship management, events, promotional marketing, branding and research.

About Omnicom Group Inc.
Omnicom Group Inc. (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries. Follow us on Twitter for the latest news.

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SOURCE Ketchum