Microsoft

Report on Political Contributions and Lobbying Costs

WHEREAS, corporate campaign contributions and lobbying expenses have reached record levels;

WHEREAS, public opinion polls demonstrate widespread support for campaign finance reforms limiting the political influence of large-money contributors, including corporations;

WHEREAS, corporations spent a record $1.42 billion on lobbying in 1998, up 13% from the previous year, according to the non-partisan Center for Responsive Politics. The number of registered Washington-based lobbyists rose to 20,512 in 1998, up 37% from the previous year and representing 38 lobbyists for each member of Congress.

WHEREAS, Microsoft is the nation’s fourth largest corporate soft-money contributor (exceeded only by AT&T, United Parcel Service and Philip Morris) during the current 1999-2000 federal campaign cycle (source: Center for Responsive Politics; www.opensecrets.org);

WHEREAS, several large companies, including General Motors, Monsanto, Time Warner and Ameritech, have adopted policies prohibiting unregulated "soft money" political contributions;

RESOLVED, that Microsoft publish a report to shareholders outlining its policies and use of shareholder funds for political purposes. The report shall: a) summarize Microsoft's federal, state and local campaign finance contributions (including soft money contributions) and lobbying expenses; b) summarize the company's policies applied in allocating shareholder funds for political purposes; and c) summarize the corporation's lobbying position on campaign finance reform. This report shall be prepared at reasonable cost, and may omit confidential information. The report shall be made available to shareholders, no later than April 30, 2001.

SUPPORTING STATEMENT
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. . . corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed."

—Abraham Lincoln, 1864

In the midst of the Civil War, President Abraham Lincoln warned of the dangers to a democracy when political power is concentrated. Lincoln's words ring as true today as they did seven score years ago. A growing number of Americans are worried about special interests taking over our political process.

As shareholders we should be concerned that our company is winning in the marketplace because it delivers superior products and services to its customers, not because it has superior access to political leaders who make the rules. Political control is fleeting, leaving companies relying on this strategy vulnerable to public backlash.

As shareholders and as citizens we bear a responsibility for the political investments of our corporation. It is our responsibility to assure that our company is using its political influence prudently and in a fashion that doesn't trample upon the interests of others in our democracy.

PLEASE VOTE YES.

Responsible Wealth, 29 Winter Street, 2nd Floor, Boston, MA 02108.
Voice: 617/423-2148 Fax: 617/423-0191.
© 1999, 2000 Responsible Wealth. All rights reserved.