Microsoft reiterated that it will not be giving political contributions to "527 Groups" as doing so is opposed to the company's political principles.

In a statement, Microsoft Vice President (US Government Affairs) Fred Humphries said: "Our principles state that Microsoft will not make corporate contributions to any so-called "527" non-political party organizations."

A 527 group refers to organizations created primarily to influence the nomination, election, appointment or defeat of candidates for public office. They are tax-exempt, not regulated by the Federal Election Commissions and not subject to the contribution limit applied to political action committees.

Mr. Humphries explained: "As part of Microsoft's commitment to corporate social responsibility, we adopted a set of political principles several years ago which have been periodically updated. These political principles are available on our corporate website and are included annually in our Corporate Responsibility report."

"The ten political principles we've adopted guide our engagement in the US political process. By establishing these, we are holding ourselves accountable to an open and transparent engagement model with all stakeholders regarding our direct and indirect participation in the political process."

Microsoft engages in a US public policy process through its sponsorship of Microsoft Political Action Committee (MSPAC). The committee informs Microsoft employees and shareholders about important issues and government decisions that can affect Microsoft business, and further provides an opportunity for its members to collectively support public policy positions deemed important by Microsoft and the software industry.

According to Microsoft Corporate Citizenship page, MSPAC is a bipartisan organization which contributes to the campaigns of federal, state, and local candidates.

"MSPAC typically supports candidates who share Microsoft views on public policy, serve as congressional or legislative leaders, represent districts or states where Microsoft has a major business presence, or serve on committees that have jurisdiction over legislation that is important to the company"

OpenSecret.org, a research group tracking money in US politics, reports that Microsoft is one of the biggest contributor in the United States. According to their data, Microsoft has donated $1,744,734, of which 59 per cent went to Democrats. It has donated $1,021,500 to political action committees and $723,234 to individuals.