DISNEY DECISION ISOLATES BAPTISTS : RIGHTWARD SHIFT LEFT LESS ROOM FOR MIDDLE-OF-THE-ROAD FAITHFUL.

Byline: Associated Press 

It was a marriage made in corporate heaven: the Walt Disney Co. and the Southern Baptist Convention.

For the nation's largest Protestant denomination, Disney represented a haven amid a hostile Hollywood culture that often glorifies casual sex, violence and profanity.

For Disney, the 16 million-member church represented an ideal consumer base: people looking for the wholesome family entertainment the corporation built its empire upon.

But as the convention earlier this month packed up its annual gathering at the Louisiana Superdome and Disney prepared to move in for the premiere of its latest animated film ``The Hunchback of Notre Dame,'' the two were on the verge of a major breakup.

It leaves Baptists increasingly isolated from mainstream culture and Disney wondering how far it could veer away from its traditional base before it causes an exodus of loyal customers.

``My kids were all excited about Disney's being here and the new movie,'' said John Jones of Nashville, Tenn. ``But we won't be going to it now. We'll be praying for them instead, hoping they'll come back to the kind of company they used to be and the families that always supported them.''

Jones, like thousands of other Southern Baptists, plans to boycott Disney unless it changes corporate policies that extend benefits to companions of gay employees and stops allowing gay and lesbian theme nights at its parks.

The nation's largest Protestant group is also upset over movies released by Disney's subsidiary, Miramax Films, such as ``Priest,'' about a gay Roman Catholic cleric, and ``Kids,'' a look at adolescent sex.

``When I think of Walt Disney, I think of Mickey Mouse, Dumbo, Snow White,'' said Marion Park of Atlanta. ``That's what I want the company to be, not an abomination to God.''

The convention passed a resolution that said, in part: ``In recent years, we have watched the world's largest family entertainment company with growing disappointment as Disney Co.'s moral leadership has been eroded by a variety of corporate decisions.''

Disney, which now has assets ranging from the Mighty Ducks professional hockey team to Capital Cities-ABC, bears little resemblance these days to the 1928 company that released the first Mickey Mouse cartoon.

The company had $12.1 billion in sales in 1995 and now employs 71,000 people worldwide. Still, its animated films are the heart of the business and the most widely recognized aspect of the company.

``It's really ironic that the company which has been most closely identified with family values is the company that is being singled out for criticism,'' said William Fore, a professor at the Yale Divinity School. ``It's a symptom of a swing even further right theologically.''

Despite such wholesome movies as ``The Little Mermaid,'' ``Pocahontas'' and ``Angels in the Outfield'' in recent years, Southern Baptists feel betrayed by Disney, a company they once believed exemplified their standard for family values.

Disney's diversification in movies and corporate policies tolerant of alternative lifestyles comes when the Southern Baptists are reaffirming their fundamental beliefs.

Since the 1979 split that left the convention in the hands of theological conservatives, the Southern Baptists have embraced a strict, biblically based view of issues ranging from science to entertainment and including corporate spinoffs.

``Once they cleansed the leadership of the middle-of-the-road members, there was no corrective in leadership,'' Fore said. ``Without a moderate voice, it was easier for single-issue leaders to push the agenda further right.''

During a convention that warned members of ``creeping ecumenism'' and ``positive tolerance (which) declares that all viewpoints are equal,'' the Southern Baptists celebrated their conservative resurgence, acknowledging their move away from liberalism.

Now they want Disney to make a similar stand.

``The Scripture is the inerrant, infallible word of God,'' said the Rev. Wiley Drake. ``Disney needs to use it as their corporate policy.''

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Photo: Despite family fare like ``Pocahontas,'' Disney will be boycotted.