Editor's Alleged Slur Casts Pall on N.Y. Times' Reputation

July 24, 2007 — -- The New York Times has reportedly launched an investigation into the alleged use of a homophobic epithet by a senior editor, potentially tarnishing the paper's reputation as a progressive, accepting workplace and raising questions about when, where and by whom such slurs can be used on the job.

Though the Times would not comment, sources at the paper confirmed to ABCNEWS.com that the company had taken measures to figure out whether Michelle McNally, an assistant managing editor and the director of photography, called a photo editor "fag" or "faggot" at a party celebrating the paper's move to new offices last month.

"It's our practice not to comment on personnel matters. I can tell you the matter is closed," wrote Times spokeswoman Catherine Mathis in an e-mail to ABCNEWS.com.

In an internal company memo obtained by the New York Post, Times management reminded staffers Wednesday of the paper's discrimination policy, writing: "From time to time, the company likes to remind employees of its various policies. … We encourage you to read it, which features guidelines on what to do if you have a complaint, or receive one."

A New York Times staffer familiar with the company's diversity policies told ABCNEWS.com that "some people are very upset by this," but that the incident "was an unusual situation" given the paper's reputation as a "welcoming, diverse workplace."

According to the Human Rights Campaign, the Times scored 100 out of 100 on its corporate responsibility index, a measure the group uses to rate companies on their treatment of gay employees.

"The Times is emblematic of the progress of accepting gay people on the job, but it may also be emblematic of the progress that needs to be made," said Daryl Herrschaft, director of HRC's Workplace Project.

"Offensive words like that epithet should not be used in any workplace setting," Herrschaft told ABCNEWS.com. "Most gay people can tell you if the word was used in a malicious way or if it was banter among friends. #&0133 But on the whole, in a workplace setting, the word should not be used," he said.