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The Seattle Times
By Alicia Mundy
WASHINGTON ? The way the folks in the nation's capital see it, if married political opposites Mary Matalin and James Carville can live under one roof, why can't Ralph Reed and Joe Lockhart?
All over Washington, D.C., Republican and Democratic consultants slug it out on TV for their opposing political parties while working arm in arm behind the scenes for the clients they have in common.
Still, it's a reminder of the weirdness of Washington that both Reed, a leading political figure among Christian conservatives, and Lockhart, one of President Clinton's former press secretaries, are on Microsoft's payroll.
In the culture of Capitol Hill, this odd combo is not only acceptable ? it's a survival strategy for companies trying to influence Congress.
Like many companies, though, Microsoft has bulked up its GOP connections in response to Republican control in the capital. It has no Democrats on retainer with a higher public profile than the Republican Reed.
The role of Microsoft's lobbyists and consultants came under scrutiny recently when some political bloggers suggested that Reed's seven-year association with the company was behind its decision to withhold support for a state gay-rights bill, which it had endorsed in previous years. The bill lost by one vote in the state Senate.
The company is known for keeping its lobbying and public-relations moves private. Even normally talkative D.C. insiders won't discuss their connections to the company.
Lockhart declined to be interviewed for this story, and when asked a casual question about Microsoft at last weekend's White House Correspondents Dinner, he just smiled and drew his finger across his mouth like a zipper.
"Microsoft does not typically discuss specifics about its consultants," said Ginny Terzano, a company spokeswoman. "However, like many major corporations, we seek a variety of outside resources, on both the Democrat and Republican side, to help us on key public-policy issues."
Microsoft says it decided to become neutral on the state gay-rights bill simply because the company wanted to narrow its legislative agenda to business matters. However, Richard Levick, a corporate crisis-management specialist in D.C., says Microsoft's decision on the bill left the impression ? rightly or wrongly ? it was responding to outside pressure. "In Washington, perception trumps reality every day," he said.
Reed declined to comment for this story, but his company, Century Strategies, says he doesn't consult on social issues with Microsoft.
Progressive credentials
In response to the gay-rights flap, Microsoft has emphasized its credentials as a progressive and fair-minded employer. "Microsoft is unequivocally committed to diversity and the welfare of its employees as reflected in the policies of this company," Terzano said.
Microsoft has an active gay and lesbian employee group, and the company's top in-house lobbyist is Jack Krumholtz, a lawyer who was hired nearly 10 years ago. He is also co-author of "The Unofficial Gay Manual," a humorous look at gay lifestyle and dating disasters, published in 1994. He did not respond to requests for an interview for this story.
Reed gets $20,000 per month from Microsoft, according to published reports. Microsoft says he consults on trade issues.
But well-connected consultants like Reed, a founder of the Christian Coalition, also can open doors to high-level Republicans. Moreover, they provide balance for a company that has a reputation as a socially liberal employer.
Microsoft had little presence in Washington, D.C., until the late 1990s. It employed few lobbyists during the Clinton administration, when Democrats were in power. That changed, though, when the U.S. Justice Department brought its antitrust case against the company in 1998. Lobbying became a priority.
By D.C. standards, it is a sign of Microsoft's maturing as a sophisticated corporation that it has hired some of the capital's most effective powerbrokers in recent years.
Millions on lobbying
The company has spent more than $61 million on lobbying since 1998, says the Center for Public Integrity, a political watchdog group. Currently, the bulk of Microsoft's 20 registered lobbying companies are law firms that deal with legal and tax issues, the center says.
But its representatives also include Barbour Griffith & Rogers ? a lobbying shop founded by former Republican National Committee chair Haley Barbour, who is now governor of Mississippi ? and Lockhart's Glover Park Group, which handles public relations.
Lockhart's firm includes Carter Eskew, one of the Democrats' best political strategists. Eskew worked with Clinton and on former Vice President Al Gore's unsuccessful presidential campaign in 2000.
Also among Microsoft's consultants and lobbyists is Clark Weinstock, a firm whose members included noted party hostess Juliana Glover Weiss, former press aide to Vice President Dick Cheney. She just left the firm to work for former Attorney General John Ashcroft.
Dipping into think tanks
Less publicized, but perhaps more important to Microsoft, is its work with two conservative think tanks. One, Americans for Tax Reform, is led by Grover Norquist, an aggressive player in GOP politics who has been on Microsoft's payroll in recent years. The other is Citizens Against Government Waste.
In the 1980s, Reed and Norquist were the nexus of young conservative Republicans demanding a place at the GOP table.
In 1990, according to the book "The Religious Right," published by the Anti-Defamation League, Reed said, "What Christians have got to do is take back this country, one precinct at a time. ... I honestly believe in my lifetime we will once again see a country governed by Christians and Christian values."
By the early 1990s, Reed was running the Christian Broadcast Network and Norquist was strategizing the GOP takeover of Congress. Both men began a pragmatic program in the mid-1990s to try to steer GOP candidates clear of divisive social issues, including condemnation of gays, as a way to attract Democratic and independent voters.
In 1994, Norquist helped Newt Gingrich write the Contract With America, the blueprint for the Republican agenda in Congress. More recently, he created the "K Street project," in which GOP leaders have demanded that lobbyists ? most of whom have offices on D.C.'s K Street ? hire more Republicans and fire Democrats, to ensure entree on the Hill.
Reed is running for lieutenant governor of Georgia, and Norquist has access to the White House, where he runs breakfasts for religious leaders with Karl Rove, Bush's chief political adviser.
Microsoft's pursuit of goodwill in D.C. involves a strategy beyond lobbyists and public relations. The company also has benefited from the support of Norquist's Americans for Tax Reform, and Citizens Against Government Waste.
Microsoft declined to say whether it donated to either of the nonprofit groups.
"We work and partner with several third-party organizations and think tanks as a way to advance policy ideas and policy agendas helpful to the industry," Terzano said.
Think tanks "lobby" in a special way. As nonprofits, they accept contributions, but don't have to disclose donors. They then promote a donor company's issues on the Hill, suggest contributions that companies could make to political candidates, open doors to lawmakers and the White House, and create media campaigns that make news.
Take taxes, a crucial issue for Microsoft. The Republican head of the House Ways and Means Committee, Rep. Bill Thomas of California, has a reputation for not taking phone calls from Democrats. But he doesn't say "no" to Norquist or the two think tanks.
"Shoulder to shoulder"
In 2001, Americans for Taxpayer Reform derided the cost of the government's lengthy antitrust suit against Microsoft and called the case's ultimate settlement a "victory for consumers."
"We have stood shoulder to shoulder with Microsoft on business issues," said Chris Butler, an Americans for Taxpayer Reform spokesman. He declined to say whether Microsoft has donated to the organization.
Citizens Against Government Waste did a media blitz several years ago, urging state attorneys general to drop their antitrust lawsuits against Microsoft. "It's been well known that we've worked with Microsoft on a commonality of interests," said Tom Schatz, the organization's president.
Microsoft's network of lobbyists and think tanks is key to a successful company, explained Frank Mankiewicz, a public-relations leader at Hill and Knowlton's Washington office. The most sophisticated companies reach out at all levels with state and federal lobbying, think tanks and public relations, he said, and the integration of all that makes a good political program.
"You need to have both political parties represented," he said. "It's always good to think about the future."
Researchers David Turim and Gene Balk contributed to this story. |