Corporations have made great progress over the past decade creating more-welcoming environments for lesbian, gay, bisexual, and transgender (LGBT) employees. Today 85% of Fortune 500 companies have protective policies that address sexual orientation—up from 51% in 2000. Nonetheless, surveys show that many LGBT employees still view their sexual orientation as a hindrance on the job: Fully 48% of LGBT respondents report remaining “closeted” at work.

A version of this article appeared in the July–August 2011 issue of Harvard Business Review.