Microsoft now backs gay rights bills

For the second time in the past eight months, Microsoft has switched its stance on the gay rights issue. In an e-mail to employees yesterday, Chief Executive Steve Ballmer said the company would publicly support initiatives to protect the rights of homosexuals in the workplace.

"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," Ballmer wrote.

The reversal comes just 15 days after an anti-discrimination bill was defeated in the state Senate by one vote. Microsoft, which had previously written a letter of support for similar legislation, earlier this year took a position of neutrality on House Bill 1515. Gay groups, The Stranger weekly newspaper and Microsoft employees claimed that the company bowed to pressure from the Rev. Ken Hutcherson, a Redmond pastor who threatened a national boycott of the software company if it supported the anti-discrimination measure.

In his e-mail yesterday, Ballmer said he did not want to "rehash the events" that led to the company taking a position of neutrality. But he did say the company was implementing changes to make sure the mistakes were not repeated.

Rep. Ed Murray, D-Seattle and sponsor of the legislation, said he will reintroduce the gay civil rights bill next session. "I am thrilled that Microsoft has renewed its commitment to diversity, fairness and tolerance in our state," Murray said in a statement. "Next year will bring a new session and I am ready to get to work in passing this long overdue legislation."

Gov. Christine Gregoire also applauded the move by Microsoft, saying "the people of Washington overwhelmingly support civil rights."

Not everyone in Washington's political community was pleased, though.

State Sen. Val Stevens, R-Arlington, said she was disappointed that Microsoft had switched its position again and is now actively supporting gay civil rights.

"This is not a good place for a company the size and magnitude of Microsoft to be now," Stevens told The Associated Press. "I know it must be difficult for the employees who do not agree with their policy."

Some in the religious community also felt Microsoft was overstepping its bounds.

"Basically what they're getting involved in now is social engineering, which is not their place," said Randy Leskovar, senior pastor of Calvary Chapel in West Seattle, who testified against the bill.

Hutcherson, who leads Antioch Bible Church, was not available for comment.

Members of Seattle's gay community applauded Microsoft's decision.

"We welcome their support," said George Cheung, executive director of Equal Rights Washington, the lobbying organization that pushed support of the anti-discrimination bill. "Microsoft is a world leader in software. And we are pleased they are going to be a world leader in supporting the lesbian, gay, bisexual and transgender community."

Audrey Haberman, executive director of the Pride Foundation, called the decision "great news."

"It is easy to attach cynicism to a large company," Haberman said. "But this gives me great hope because they made a mistake, listened to people and then reversed the decision."

Still, some say Microsoft's recent indecisiveness could hurt the company's image or -- worse yet -- make it susceptible to future attacks from special interest groups.

"There is risk that they created a perception that they are vulnerable to the changing political winds," said David Batstone, a professor of social ethics at the University of San Francisco. "There is a danger that the conservative social movement will try to mobilize their constituency to change the wind again."

But Batstone believes the company did the right thing by basing its decision on deeply rooted corporate principles.

"It is always difficult for companies to be on the front edge of social change," said Batstone. "I think Microsoft has placed itself there and I am hoping other companies will want to stand there, too."

While Microsoft would support legislation that relates to diversity in the workplace, it does not plan to take up social issues, said Pamela Passman, vice president of global corporate affairs at the company. For example, she said Microsoft would not support gay marriage legislation.

The company's reversal on the controversial issue generated plenty of response, said Passman. She declined to comment when asked if Hutcherson had contacted the company regarding the new policy.

Microsoft's change of heart will likely have a bigger impact in cities and state legislatures than in Congress, congressional aides said. No federal legislation is pending that addresses workplace discrimination against gays or allows gays to receive spousal benefits or other benefits. Mark Shields, spokesman for the Human Rights Campaign, the nation's largest gay and lesbian organization, said the group hopes that Sen. Edward Kennedy, D-Mass., will reintroduce the Employment Non-Discrimination Act, which would prohibit discrimination in the workplace on the basis of sexual orientation.

The bill, which last came before Congress in 2002, would benefit from Microsoft's support, gay rights advocates said.

The vote in the state Senate was the most emotional of the session, and gay rights advocates and Democratic leaders who had said the civil rights bill was among their top priorities wept openly and vowed to continue their fight. The bill, the first time the state Senate ever voted on gay civil rights, was defeated, 25-24.

The measure would have added to a state law that already bans discrimination based on race, gender, age, disability, religion, marital status and other factors.

Republicans said they had blocked an unnecessary law that runs contrary to their religious tenets because it would have promoted homosexuality and advanced the cause of gay marriage. Fifteen other states have anti-discrimination protection for gays and lesbians.

Microsoft remains one of the country's most progressive companies when it comes to same-sex benefits. It expanded its non-discrimination policy to include sexual orientation in 1989. It added benefits for domestic partners five years later -- one of the first Fortune 500 companies to do so.

The company also supports a gay and lesbian group called GLEAM, which boasts about 700 members.

Jeff Koertzen, a gay employee who has worked at Microsoft for six years, said he was encouraged by Ballmer's e-mail because it addressed about 95 percent of GLEAM's concerns.

But the former GLEAM board member said the company's image has been tainted.

"I think there has been some damage done," said Koertzen, who plans to leave Microsoft next month.

"People will be watching them every step. It is one thing to say we will support the legislation in the future and another to actually support it."

BALLMER'S E-MAIL

The text of an e-mail Microsoft CEO Steve Ballmer sent employees yesterday:

During the past two weeks I've heard from many of you with a wide range of views on the recent anti-discrimination bill in Washington state, and the larger issue of what is the appropriate role of a public corporation in public policy discussions. This input has reminded me again of what makes our company unique and why I care about it so much.

One point really stood out in all the e-mails you sent me. Regardless of where people came down on the issues, everyone expressed strong support for the company's commitment to diversity. To me, that's so critical. Our success depends on having a work force that is as diverse as our customers -- and on working together in a way that taps all of that diversity.

I don't want to rehash the events that resulted in Microsoft taking a neutral position on the anti-discrimination bill in Washington state. There was a lot of confusion and miscommunication, and we are taking steps to improve our processes going forward.

To me, this situation underscores the importance of having clearly-defined principles on which we base our actions. It all boils down to trust. Even when people disagree with something that we do, they need to have confidence that we based our action on thoughtful principles, because that is how we run our business. ...

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. Since our beginning nearly 30 years ago, Microsoft has had a strong business interest in recruiting and retaining the best and brightest and most diverse work force possible. I'm proud of Microsoft's commitment to non-discrimination in our internal policies and benefits, but our policies can't cover the range of housing, education, financial and similar services that our people and their partners and families need. Therefore, it's appropriate for the company to support legislation that will promote and protect diversity in the workplace.

Accordingly, Microsoft will continue to join other leading companies in supporting federal legislation that would prohibit employment discrimination on the basis of sexual orientation -- adding sexual orientation to the existing law that already covers race, sex, national origin, religion, age and disability. Given the importance of diversity to our business, it is appropriate for the company to endorse legislation that prohibits employment discrimination on all of these grounds. Obviously, the Washington state legislative session has concluded for this year, but if legislation similar to HB 1515 is introduced in future sessions, we will support it.

I also want to be clear about some limits to this approach. Many other countries have different political traditions for public advocacy by corporations, and I'm not prepared to involve the company in debates outside the US in such circumstances. And, based on the principles I've just outlined, the company should not and will not take a position on most other public policy issues, either in the U.S. or internationally.

I respect that there will be different viewpoints. But as CEO, I am doing what I believe is right for our company as a whole.

This situation has also made me stop and think about how well we are living our values. I'm deeply encouraged by how many employees have sent me passionate e-mails about the broad respect for diversity they experience every day at Microsoft. I also heard from some employees who underscored the importance of feeling that their personal values or religious beliefs are respected by others. I'm adamant that we must do an even better job of pursuing diversity and mutual respect within Microsoft. I expect everyone at this company -- particularly managers -- to take a hard look at their personal commitment to diversity, and redouble that commitment.

The questions raised by these issues are important. At the same time, we have a lot of other important work to do. Over the next 18 months we'll release a broader, more advanced and more exciting set of products than at any time in the company's history. Let's all recommit to the job ahead, using our diversity as a strength to work together creatively and with respect for each other.

Thanks.

Steve