Just as advertisers finally picked up that addressing people other than "the majority" made for better sales, increasingly companies are recognizing that understanding the gay and lesbian market makes for good business. According to Jeffrey Newman, president of GFN.com, a financial web site aimed at the Gay Lesbian and Bisexual (GLB) community, gays and lesbians represent anywhere from 3 to 10 percent of the American population. To target this demographic, companies have been turning to businesses like Washington, DC-based Witeck-Combs Communications. Since August 1999, the public relations and marketing agency has been using a propriety technique called the Gay Marketing Assessment to help companies like American Airlines and Coors Brewing Co. target the gay market.

But the best way to attract diverse customers is to have employees who look like and understand the customer base. Common sense indicates that consumers like to patronize companies with good reputations for employee diversity, just as companies with bad reputations tend to lose business. In the interests of developing a more diverse workforce - and in the process, more well-rounded businesses, the country's top MBA employers are definitely making progress when it comes to attracting and retaining gays and lesbians. In 1990, less than two dozen US employers offered "spousal equivalent" benefits to GLB employees. Today, 2,856 companies offer domestic partner benefits, 71 of which are in the Fortune 500. And according to the Human Rights Campaign, out of 1558 companies with non-discrimination policies that include sexual orientation, 261 of those are in the Fortune 500.

MBAs are more willing to be openly gay and "not compromise their values," comments GFN president Newman. But will businesses be as willing to embrace gays and lesbians if the economy turns sour and MBAs are no longer a top commodity? "It won't cause a total setback," asserts one lesbian MBA. "It will be two steps forward, one back."

Vault.com asked seven current and former MBAs to discuss their experiences in interviews and in the working world. Here's what they had to share: ~ Liz Zale: Liz, age 31, is an MBA candidate at Columbia Business School, with plans to work in marketing or business development.

Peter Allen: 42 years old. Peter is the Director of Professional Development of Wharton's Out For Business GLB association. He plans to go into consulting, entertainment or healthcare.

Deborah Levy: 35 years old. Co chairs New York City's MBAQ, a GLB organization for business professionals, and is the president of Columbia Business School's GLB Cluster Q association. She plans to pursue a career in business development.

Julie Crotty: 35 years old. Julie received her JD/MBA from Cornell's Johnson School of Management. She currently focuses on research and writing, mediation, entrepreneurial projects and social reform.

Ryan Fitzpatrick: At 28 years old, Ryan is the president of the Yale School of Management's Q + GLB Alliance. He plans to enter the finance and/or real estate industries.

Andrew Fiala: age 28, is a Wharton MBA student. He is currently president of Wharton's Out for Business GLB Alliance.

Jason Stone: Jason, 29 years old, was the president of Harvard Business School's GLSA when he co-chaired the coordination of the first national Gay and Lesbian Business Conference in March 1999. He is currently the director of marketing at an Internet company.

Vault.com: Do you think that some industries are more gay friendly than others? Why or why not? Which industries to you consider most and least gay friendly? ~ Liz: I think of media, technology, entertainment and the whole service industry (especially hotels) as relatively gay friendly in the ranks (where people are quite open), but unfortunately closeted or straight as hell at the top. The worst industries would have to be banking, because there's such a perception of conservatism and a code of silence, and sports, where even professional athletes have difficulty being out. Consulting is a catch-22, because the firms themselves are supportive, but there's the whole issue of how acceptable it is to be out to the clients.

Deborah: Absolutely. Advertising, entertainment and other media are gay friendly because so many of the creatives are gay! Wall street is still like an old boy?s network. It's not an easy place for GLBs or women.

Andrew: I absolutely believe that industries vary in their extendt of gay friendliness. I consider consulting to be particularly gay-friendly - part of this perception is due to the effort by consulting firms to reach out to GLB B-school students. I also percieve high-tech as gay friendly.

Peter: Most people say that investment banking is less welcoming and really not friendly at all. There are definitely reasons why people don't come out in the industry and why people don't go in.

Jason: I'm pretty impressed with consulting firms. McKinsey, Booz*Allen, PwC, Deloitte Consulting and the Monitor Company all seem fairly progressive. They generally have non-discrimination policies, domestic partner benefits and openly gay people in very high management positions. ~ Vault.com: Do you feel comfortable telling your co-workers and peers about your sexual orientation?

Liz: I'm always comfortable, but sometimes they're not. But I find it most effective to be very matter of fact and act as if it is the most common thing to be gay and be open about it.

Julie: Comfortable. I'm generally an open person. My sexuality usually comes out naturally as I get to know people.

Deborah: I always work it in somehow, mention my girlfriend when appropriate, and so on - and then I feel better.

Ryan: With my peers I am totally comfortable. At work, it really depends. For example, at my summer internship, I [did] not come out to my supervisors but [I did come out] so some co-workers. On the one hand, it's a cautionary decision. It's also that I don't feel I need to - that people can think what they want, if they're going to think anything at all.

Vault.com: Would you bring up your sexual orientation in an interview?

Liz: If there was a logical segue to it, yes, but I also am out on my resume (as a founder of a GLB organization) so I take the guesswork out of the equation. Relationships of course aren't usually brought up, but if it concerned moving, travel, etc., that involved a partner/family, it's important to surface it early.

Julie: Not usually. Only if it was relevant and there was a reason to bring it up. Usually I wait and discuss it as I get to know people and when the topic comes up naturally.

Deborah: I decided to come out on my resume so that companies could self-select. I don't want to work for a company that isn't comfortable with me. Also, if benefits come up in an interview, I ask if there are partner benefits. ~ Ryan: I would determine that on a case-by-case basis. If I felt it was relevant-fine. But my sexual orientation doesn't have anything to do with whether or not I can do the job. Yes, it's a fundamental part of who I am, but I don't think that it affects my work. If I had reservations about a potential job or company, then I might raise the issue. If the company reacted adversely, I would likely turn down the offer and be thankful that I didn't end up in the position.

Andrew: Yes, and I have. I am the president of the GLB group at Wharton, and that role is listed on my resume. I have discussed my role as president as an example of leadership. Additionally, many of my activities outside of work and school have also included the GLB community, and I feel it is appropriate to discuss those activities when I want to demonstrate my commitment to non-work causes. If my background were different, and there were no GLB references on my resume, I would probably not discuss sexual orientation.

Peter: Right now I'm the Vice President for Professional Development of the Wharton GLB Association, Out for Business. I have that on my resume. I've also done some work with AIDS projects, which is also on my resume. Those sorts of things just invite people to read between the lines.

Vault.com: Do you think employers have become more friendly in terms of recruiting and retaining GLB MBAs? Why or why not?

Liz: I'm not sure they really make the association or believe that there are GLB MBAs out there, since GLB people are generally thought of as "radical" (which is a vast and mostly untrue generalization) and MBAs are generally thought of as "conservative" - unfortunately often true. Employers are more friendly about recruiting and retaining GLB MBAs if you let them know you're queer and if they have other GLB employees already. ~ Julie: Many recruiters seem oblivious to the issue and often uncomfortable with it. Of course there are exceptions but the general climate still seems fairly unfamiliar and uncomfortable with the topic of gays & lesbians.

Deb: Yes. Diversity is a big deal these days, and everyone wants to prove how hip they are.

Ryan: It seems that way. Not necessarily across the board, but yes, I think that companies have gotten better about it.

Andrew: Absolutely. The market for MBAs is tight - as students, we have a multitude of opportunities facing us, and employers need to attract the best and the brightest. Just as employers have stepped up their efforts to attract and retain women and racial minorities, they have stepped up their focus on GLB MBAs. While some of this increased friendliness may be the result of increasing acceptance in society, it is also almost certainly a matter of competitive advantage.