VOICE OF THE MAJORITY

Microsoft ends ties with Reed
Conservative consultant embroiled in gay rights dust-up loses retainer
By CHARLES POPE
SEATTLE POST-
WASHINGTON -- Microsoft Corp. has severed its partnership with conservative consultant Ralph Reed, the company confirmed yesterday, ending for now a relationship that joined Microsoft with a powerful Republican dealmaker but also helped fuel a controversy over gay rights legislation. Microsoft spokeswoman Ginny Terzano said the decision to end Reed's $20,000-a-month retainer was made in the past few weeks, portraying it as a routine reshuffling of consultants who regularly assist the far-flung company. "I will confirm that Ralph Reed is no longer on retainer," Terzano said. Terzano declined to say who made the decision but she insisted that Reed, who gained fame as a leader of the Christian Coalition, was hired only to advise the company on "international trade and competitive issues.""He did not do any work on social issues for us," she said. Reed has worked off and on for Microsoft for seven years, federal records show.The company's decision was first reported Thursday night on the Web site of Seattle Weekly, which cited anonymous sources. Reed has remained a leading figure in the social conservative movement that spearheaded opposition to gay marriage, stem cell research, abortion, gambling and other issues.Reed, who is running for lieutenant governor of Georgia as a Republican, did not respond to messages left at his consulting firm, Century Strategies, in Atlanta.Microsoft was harshly attacked as the state legislative session drew to a close for backing off its support for gay rights legislation. The bill, which failed by a single vote, would have made it illegal to discriminate against gays in housing, employment and insurance. The episode emerged as a national story in which Microsoft's change of position was prominently displayed. It was fueled by bloggers who sharply and repeatedly criticized Microsoft's position and Reed's connection to the company. It was a blog, americablog.com, that first published copies of the documents showing Reed was earning $20,000 a month.On the other side, the Rev. Ken Hutcherson of Antioch Bible Church in Redmond threatened a national boycott of the software company if it supported the anti-discrimination measure.Eventually Microsoft reversed field again. Earlier this month, Steve Ballmer, Microsoft's chief executive officer, said the company would actively support gay rights legislation in the future."After looking at the question from all sides, I've concluded that diversity in the workplace is such an important issue for our business that it should be included in our legislative agenda," he said.Through it all, Microsoft insisted Reed's advice was never sought on social or political issues.Reed led the Christian Coalition, the powerful group founded by evangelist Pat Robertson, from 1989 to 1997. His conservative credentials were polished more recently as the chairman of Bush's re-election campaign for the Southeast.Whatever Reed's role for Microsoft, he was among a large group of prominent lobbyists that the company has hired in recent years. The Center for Public Integrity, a non-partisan research group that monitors lobbying and the influence of money, said Microsoft had spent $61.6 million on lobbying since 1998. That figure does not include the cost of Microsoft's expanding in-house lobbying efforts.In the most recent lobbying disclosure on file, Microsoft reported spending $5.4 million on lobbying in the first six months of 2004. That does not include money paid to consultants such as Reed, who aren't registered lobbyists.And while Reed gained prominence during the gay rights debate, he is far from the only prominent Republican hired by the company. Records show that Microsoft paid Grover Norquist $60,000 in 1999. Norquist is founder of Americans For Tax Reform, an influential conservative group that has close ties with the White House and with Republican leaders in Congress.The company also hired Barbour, Griffin & Rogers at a cost of $180,000. One of the firm's principals, Haley Barbour, is the former head of the Republican National Committee who is now governor of Mississippi.Public interest groups that track business influence and lobbying in Washington, D.C., said it isn't surprising that Microsoft -- or any major company -- would sign up a Republican operative.Republican leaders, most notably House Majority Leader Tom DeLay of Texas, have told companies that they need to shift business to Republican-leaning firms or lobbyists if they want a reception on Capitol Hill. The initiative is called the K Street Project, after the street in Washington, D.C., where many lobbyists have offices.Whatever the reason for Microsoft's decision on Reed, a senior official for a major gay rights organization is glad it was made."Ralph Reed is one of the most high profile anti-gay activists," said David Smith, vice president for policy for Human Rights Campaign, the nation's biggest gay rights group."Because of his stature, it fed perceptions that he played a role" even when Microsoft said repeatedly he didn't, Smith said.As for the company's decision to terminate Reed, "I don't have too much sympathy for Ralph Reed losing a contract," Smith said.

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