CORPORATE
CITIZENSHIP REPORT
2010
acting on our
commitmentS to
clients, colleagues
and communities
OUR COMPANY AT A GLANCE
Marsh & McLennan Companies is a global professional services firm providing advice and solutions in
the areas of risk, strategy and human capital. It is the parent company of a number of the world’s leading
risk experts and specialty consultants, including MARSH, GUY CARPENTER, MERCER and OLIVER WYMAN.
With 51,000 colleagues worldwide and annual revenue exceeding $10 billion, our companies provide
analysis, advice and transactional capabilities to clients in more than 100 countries.
RISK AND INSURANCE SERVICES
Marsh is the world’s leading insurance broker and risk management
advisor. It teams with clients to define, design and deliver innovative
industry-specific solutions that help them protect their future and
thrive. Its colleagues collaborate globally to provide advice and
transactional capabilities, helping clients in managing risk for growth.
ColleaguesAbout 25,000
Revenue Contribution IN 2010
45%
www.marsh.com
CONSULTING
Mercer is a global leader in human resource consulting, outsourcing
and investment services. Mercer works with clients to solve their
most complex benefit and human capital issues by designing,
implementing and administering health, retirement and other
benefit programs. Mercer’s investment services include investment
consulting, implemented consulting and multi-manager investment
management.
ColleaguesAbout 20,000
Revenue Contribution IN 2010
33%
www.mercer.com
Guy Carpenter is the world’s premier reinsurance intermediary
and strategic advisor to leading insurance and reinsurance
organizations. It delivers integrated solutions through its
industry-leading analytics and advisory services, highly
specialized product knowledge and trading relationships with
reinsurance markets around the world.
Colleagues
About 2,000
Revenue Contribution IN 2010
9%
www.guycarp.com
Oliver Wyman Group delivers advisory services through three
operating units, each a leader in its field. Oliver Wyman is a
global management consulting firm that combines deep industry
knowledge with specialized expertise in strategy, operations,
risk management, organizational transformation and leadership
development. NERA Economic Consulting provides economic
analysis and advice to public and private entities. Lippincott is a
brand strategy and design consultancy.
Colleagues
About 3,400
Revenue Contribution IN 2010
13%
www.oliverwyman.com
Our businesses are supported by our colleagues in Marsh & McLennan Companies’ corporate functions.
Economic Performance
2010
2009
2008
Revenue
$10,550
$ 9,831
$10,730
COMPENSATION AND BENEFITS
$ 6,465
$ 6,182
$ 6,830
OTHER OPERATING EXPENSES
$ 3,146
$ 2,871
$ 3,221
STOCKHOLDERS’ EQUITY
$ 6,415
$ 5,863
$ 5,760
DIVIDENDS PAID
$
$
$
(in millions, except employees)
NUMBER OF EMPLOYEES
Source: Marsh & McLennan Companies
Form 10-K, December 31, 2010
452
51,000
431
49,000
412
50,100
TABLE OF CONTENTS
Message From The CEO
A Global Company, A Global Citizen
Our Business
Our Work With The Environment
Our Work With Communities
Our Work With People
About This Report
1
2
4
6
10
14
21
MESSAGE
FROM THE CEO
CORPORATE CITIZENSHIP at Marsh & McLennan Companies encompasses the many ways
we interact with our clients, our colleagues and the communities in which we live and work.
It comprises the following:
• Environmental Sustainability—our wise use of resources
• Corporate Social Responsibility—our actions in communities and our employees’
involvement in these efforts
• People—our commitment to fostering a high-performing, inclusive workplace built on a
foundation of excellence, respect and integrity
We’re very proud of our efforts in each of these areas at the individual, local, national and,
increasingly, global levels. Our desire to protect environmental resources drives our own
actions and inspires our work with clients who face similar challenges. We have a strong
record of supporting communities and people at risk. Our people give generously of
their time, their professional expertise and their resources. We support a wide array of
organizations in the areas of health, education, the environment, and arts and culture.
And we hold ourselves to the very highest standards of business ethics and integrity.
While this report represents the first comprehensive summary of our corporate citizenship
activities, the values and ideals represented here are key elements of a corporate legacy
that can be traced back more than a century. We’re gratified by our efforts and our progress
in the areas noted above. At the same time, we acknowledge that our clients, colleagues
and communities face growing social, environmental and professional challenges. We will
continue to do our part to address and provide solutions to these challenges.
I am proud to present you with this summary of our ongoing efforts. We encourage you to
share your thoughts and comments with us.
Brian Duperreault
President and CEO
Marsh & McLennan Companies
May 31, 2011
A GLOBAL COMPANY
A GLOBAL CITIZEN
Colleagues from our
Milwaukee offices created
a career seminar on the
insurance industry for interns
from Howard University.
GLOBAL REVENUE BY REGION
2001
Our offices in Chicago and
Atlanta achieved LEED®
Gold certification.
Marsh & McLennan Companies
received a 100 percent rating
in the Corporate Equality
Index of the Human Rights
70% United States
Campaign Foundation.
3% Canada
2% Asia Pacific
Our Operating
2% Latin America & Other
Companies in Mexico
7% Continental Europe
won the prestigious
16% United Kingdom
Socially Responsible
Enterprise designation
from the Mexican
Center for Philanthropy.
Marsh colleagues in São
Paulo and surrounding
cities collected goods
for Brazilians affected by
2010
landslides and flooding
during 2009–2011.
44% United States
7% Canada
10% Asia Pacific
6% Latin America & Other
17% Continental Europe
16% United Kingdom
Marsh & McLennan Companies
Correspondent
Our London office at
Tower Place is a zero
waste-to-landfill facility.
Our Asia Pacific
region’s focus on
gender diversity led
women in Mercer
Mercer sponsors the
India to form a
European Professional
network promoting
Women’s Network in
career development.
13 countries.
Oliver Wyman Group
developed a five-year
strategic vision for Room
Guy Carpenter’s
to Read in South Asia.
Asia-Pacific
Climate Impact
Centre published
its first annual
report.
Marsh Environmental
Services developed
sustainability strategies
for a diamond mining
company in Botswana.
Colleagues in Melbourne
and Sydney held town
halls that included
colleague engagement,
diversity and inclusion
topics.
OUR BUSINESS
Our intention is to build Marsh & McLennan Companies into an elite
business enterprise valued by our clients, our colleagues and our
shareholders—and we’ve articulated a growth strategy for the firm that
will help us realize this aspiration.
Our Strategy
Our firm’s growth strategy is the underpinning of our long-term goal to position Marsh & McLennan Companies as
an elite business enterprise. Our focus is on four strategic pillars designed to create exceptional value and superior
returns for investors:
1
Consistent, long-term growth: We will seek to achieve sustained growth in revenue and
2
Low capital requirements: Low capital usage will continue to be one of our Company’s key operating
3
High cash generation: Maintaining earnings quality is fundamental to our future success, and we will
4
Low risk profile: We will continue to focus on minimizing and managing operational risk. In 2010, we
earnings per share.
principles. We will not acquire or develop businesses that require significant capital investment.
seek to consistently generate significant cash to fund acquisitions, investments and dividends.
appointed a Chief Risk Officer for the firm and revamped our approach to enterprise risk management.
Achieving our aspiration is only possible with committed, motivated colleagues. Accordingly, we focused on colleague
engagement as a key internal priority during 2010 and are continuing that emphasis in 2011.
Additionally, we will continue to unlock the potential value of the firm by working more effectively across our individual
businesses to weave the Company together. We believe we can leverage our global scale to realize cost efficiencies and
also capitalize on adjacencies between our companies to create revenue opportunities.
Telling our story
We have reinstituted the corporate name Marsh & McLennan Companies. In returning to a name from the past,
we are conveying something new through a revitalized look and feel for the Company.
We believe no other firm can match the breadth of our portfolio, the depth of our expertise and the strength of
our commitment to creating lasting partnerships with clients. Through a highly focused approach that leverages
our most important asset—our people—we will tell our story in the marketplace and reinforce our position as a
preeminent global team of professional services companies.
4 OUR BUSINESS
moving
forward
in 2011
Corporate governance
The Marsh & McLennan Companies Board of Directors and Executive Committee are
committed to the very highest standards of corporate governance, business integrity
and professionalism. The leadership provided by our Board and the responsible
governance of our organization provide a foundation of operational excellence and
accountability for the way we do business. We believe that transparent communication
Educate and train
100 percent of
employees in our new
Code of Conduct
Roll out our new
branding strategy
of our governance procedures helps our stakeholders assess the quality of our Company
and its management.
www.mmc.com/about/governance
Code of
Conduct
Public policy
We introduced a best-in-class Code of
Our Government Relations Group, established in 2008, advocates for the firm’s legislative
Conduct, entitled The Greater Good, to
and regulatory interests and advances the interests of our shareholders. We meet with
address the greatest area of exposure that we
legislators and policy makers to express our Company’s viewpoints on issues that affect
face as a professional services firm: human
our industries, and we share our expertise in a variety of areas, including health care,
risk. Our new Code of Conduct, available in
retirement security and financial services. Our activities during 2010 centered on legislative
23 languages, sets forth our expectations
developments in the United States, specifically the Dodd-Frank Wall Street Reform and
for ethical behavior and integrity. We have
Consumer Protection Act and the Patient Protection and Affordable Care Act (PPACA). Both
taken the broad concepts articulated in our
of these bills carry the potential to impact our business and our clients’ interests as well.
vision and values and created a detailed
road map for colleagues to follow. It contains
We are pleased that the Dodd-Frank provisions on surplus lines and corporate governance
explicit business standards that help elimi-
disclosure requirements do not disadvantage our industry sectors. Oliver Wyman
nate uncertainty and avert misconduct by
continues to work with clients to understand the impact of Dodd-Frank on a range of areas.
providing guidance for proper behavior. Our
In particular, Oliver Wyman has conducted sophisticated economic analysis for leading
new Code emphasizes the importance of
financial services trade associations.
raising concerns.
During the development of PPACA, we worked to ensure that the bill would preserve the
We are implementing the Code with face-
employer-based health care insurance system. This bill requires extensive rule making, and
to-face and online training and a unique
we continue to remain involved in its implementation at both the state and federal levels.
documentary film, Faces of Marsh & McLennan
Given our clients’ broad interests in the health care industry, PPACA has created strong
Companies. The film elicits a strong emotional
demand for the services of Marsh, Mercer and Oliver Wyman.
response from its audience, emphasizes
the importance of the work we do around
As we are a U.S.-based corporation, American tax policy has a significant impact on our
the world and the individual responsibility
business globally. Thus, we will continue to advocate for a corporate tax system that is
each of us has to do it right. At the request of
equitable to service companies, more consistent with average tax rates and flexible with
our colleagues, training will be conducted
regard to the global movement of capital.
predominantly in person by managers. This
learning and education will also become part
of the on-boarding process for new hires.
www.mmc.com/about/code
OUR BUSINESS 5
OUR WORK
WITH THE ENVIRONMENT
We are committed to reducing our environmental impact and providing an
environmentally conscious workplace for our colleagues. In addition, we
provide a growing range of products and services designed to assist our
clients with the challenges of sustainability.
Marsh & McLennan Companies’ commitment to environmental sustainability is a core corporate principle which has
guided our business conduct and influenced our strategic and operational decisions for many years. Recognizing
the growing environmental threats, we have elevated this principle as an integral part of our business agenda on two
levels. We are accelerating our adoption of environmentally friendly policies and practices in our own operations. And
we continue to provide an extensive array of new and existing environmental risk management solutions to assist our
clients in analyzing, reducing and managing their own environmental impact and risks.
Developing infrastructure
To manage our increasing efforts in environmental sustainability, we created the position of Corporate Sustainability
Officer (CSO). In partnership with representatives from each Operating Company as well as our support groups
(Procurement, Real Estate, Corporate Travel and Technology), the CSO is responsible for the development of shortand long-term sustainability strategies, including the tracking of solutions designed to assist clients in identifying
sustainability risks. The CSO meets regularly with the Board-level Corporate Responsibility Committee.
Our sustainability strategy
Our sustainability program has three components:
• Reduce the sustainability impact of our own activities
• Provide our colleagues with an environmentally conscious workplace
• Provide our clients with the expertise, advice, products and solutions that help them with their own sustainability
challenges, and to support them with opportunities where environmental issues are present
www.mmc.com/sustainability
Reducing our environmental impact
At the Marsh & McLennan Companies corporate services level, we have begun to effect real change to reduce the
environmental impact of our own activities. For example, with a global real estate portfolio of roughly 550 offices in
nearly 80 countries, we recognized that a significant reduction in our carbon footprint could result by making even small
changes in the size of our portfolio. As such, we have reduced our real estate footprint by almost 20 percent since 2006.
In the procurement of products, we focus on better understanding our supply chain to identify and acquire products that
will not jeopardize the environment. We also confirm that our suppliers are committed to providing products that are
environmentally safe and affordably priced. Our technology group has also introduced sustainability at all stages of the
technology lifecycle: procurement, installation, operation and disposal.
6 OUR WORK WITH THE ENVIRONMENT
As part of Hands on New York Day,
Marsh & McLennan Companies
colleagues helped restore a
section of St. Nicholas Park
in upper Manhattan. This
annual springtime event helps
transform the city’s parks,
community gardens and green
spaces for summer.
Saving energy
We are reducing our overall energy consumption in offices around the world by using
ENERGY STAR-rated equipment where possible, downsizing and consolidating technology
Carbon audit
in the U.K.
devices, implementing smart lighting solutions and educating colleagues. In addition, our
Global Technology Infrastructure group continues to identify effective and efficient energy-
Our Operating Companies in the
reduction solutions for our data centers.
United Kingdom have taken the lead in
implementing environmentally sustainable
policies and processes. Our principal U.K.
Green on the go
facilities have implemented a wide range of
Managing a global clientele is an essential component of our business model, but we’re taking
programs following an audit by the Carbon
incremental steps to more effectively measure and manage travel at Marsh & McLennan
Trust, a nonprofit organization created by
Companies. Global Travel has consolidated our North American and U.K. travel services, and has
the U.K. government to help businesses
an external partner who provides global reporting metrics. We plan to move all regions over to
reduce their carbon footprint. Many of these
this new program, further improving the accuracy of our emissions data from business travel. To
actions resulted in the implementation
aid colleagues in determining when internal travel may not be necessary, we are improving our
of sustainable practices, while others
training program for the roughly 150 video conferencing systems available worldwide.
promoted communication, performance
measurement and data collection.
Taming the paper giant
Curtailing paper use is at the forefront of our many efforts to reduce consumption and waste.
Double-sided print, now standard in U.S. offices, is expected to decrease our annual U.S.
paper consumption—approximately 240 million pages—by 15 percent and will be rolled out
to all regions during 2011. We have also instituted paperless travel and expense processing
as well as electronic invoicing and payment processing in some of our Operating Companies.
While we work to minimize large scale print jobs, when it is required we utilize print suppliers
that are Forest Stewardship Council (FSC) certified, participants in mill reforestation
programs and users of recycled papers and nonpolluting inks.
Greater transparency
Recognizing the importance of the transparency of our actions and outcomes, we are
moving toward greater public disclosure. Since 2006, we have responded to the Carbon
OUR WORK WITH THE ENVIRONMENT 7
Disclosure Project (CDP), voluntarily measuring and disclosing our greenhouse gas
emissions and sustainability strategy. The CDP is an independent, nonprofit organization
holding the largest database of primary corporate climate change information in
the world. Approximately 3,000 organizations in some 60 countries measure and
disclose their greenhouse gas emissions and climate change strategies through CDP.
We are communicating our accomplishments in other ways as well, including greater
reducing
our real
estate
portfolio
environmental content on our external website and colleague intranet, focused
colleague messaging, more comprehensive responses to client questions and more
Year
Reduced by
2007
5.45%
2008
3.08%
2009
7.84%
2010
4.48%
frequent disclosure to the media.
As a result of our increased public disclosure initiatives, Marsh & McLennan Companies
ranked 78th in the Newsweek 2010 Green Rankings of the 500 largest U.S. companies, also
ranking eighth out of 39 entries in the Banks and Insurance sector.
Building an environmentally CONSCIOUS workpLace
We have adopted several policies to strengthen the environmental attributes of our
office spaces. They include the following:
• Seek longer lease periods (10+ years) or strive to renew existing leases to minimize
construction waste, implementing either approach where and when it makes financial
and cultural sense.
• Reduce office space per employee. In 2010, our total portfolio dropped approximately
600,000 square feet despite multiple acquisitions.
• Utilize environmental sustainability as a criterion in selecting new office space.
• Require that all new construction projects utilize a specified set of green building
and design standards.
As an example, Gateway35, our reception, conference and dining center on the 35th floor
of our corporate headquarters in New York City, has quickly become a hub for colleagues
and client activity. The environmentally sensitive design features state-of-the-art reception
facilities, comprehensive conference services and food sourced from local farmers or
obtained by sustainable means.
LEED®
CERTIFICATION
Our Chicago (pictured) and Atlanta
Engaging our colleagues
offices received LEED® Gold certification
Early last year, the Company introduced an environmental intranet site to capture the
under the U.S. Green Building Council’s
innovative work of our businesses and colleagues, while providing information and
certification system for the design,
resources to them. Our goal was to provide a platform for continuing communication
construction and operation of green
and to gather suggestions on the paths we might take in the future. In 2011, we are
buildings. Four additional projects are
focusing heavily on colleague engagement by expanding opportunities for colleague
currently pending LEED certification.
involvement and input in each office around the world. We are upgrading our intranet
From a process perspective, every
to provide more availability for social networking with message boards, blogging and
new project in the real estate portfolio
interactive sharing of thoughts and ideas.
is reviewed for potential certification
regardless of location.
8 OUR WORK WITH THE ENVIRONMENT
Supporting our clients
In response to climate change challenges, we’re leveraging our organization-wide
knowledge base to increase clients’ resilience to climate change risks and to optimize
the new economic landscape surrounding climate change.
www.mmc.com/sustainability/clients
Marsh
Marsh has a history of collaborating with clients to identify, assess and manage
environmental, supply chain, reputational and operational risks. Marsh’s highly regarded
Global Environmental Practice comprises some of the best and most diverse talent in
the environmental risk and environmental insurance industries. Marsh specialists have
conducted client work in renewable energy, green technology, waste and recycling,
water, resource extraction and green buildings.
Marsh Risk Consulting’s newly created Enterprise Sustainability Program helps clients
understand and take advantage of all the dimensions of sustainability: environmental,
social and economic. Its recent work includes projects for the U.S. Department of
Energy, the World Wildlife Fund, a U.K. utility, and a carbon aggregator, among others.
Guy Carpenter
The Guy Carpenter Asia-Pacific Climate Impact Centre was established in 2008 to better
understand climate-related perils and catastrophic risks within the Asia Pacific region.
Research conducted includes climate studies of winter monsoons, and simulations and
moving
forward
in 2011
Create a sustainability
training program for
colleagues
Implement a paper
reduction campaign to
educate colleagues and
further reduce paper
consumption
Develop a GreenTraveler
awareness program
to aid colleagues in
making sustainable
choices when traveling
is necessary
Climate change
advice for
investors
predictions of tropical cyclones and sea-level changes in the South China Sea.
Mercer and a group of leading global
investors—representing approximately
Mercer
US$2 trillion in assets under management—
Mercer provides a diverse array of well-established and new services to help companies
launched a study to raise awareness among
identify sustainable investment and workforce opportunities. Increasingly, institutional
institutional investors as to how climate
investors are realizing the importance of factoring environmental, social and corporate
change might affect their asset allocations.
governance considerations into their investment decision-making and ownership
The resulting report, Climate Change
practices. Mercer Responsible Investment, established in 2004, offers cutting-edge
Scenarios—Implications for Strategic Asset
advice to leading investors. A pioneer in its field, Mercer served as a consultant to the
Allocation, was released in February 2011.
United Nations on the development of the Principles for Responsible Investment in 2006
The report analyzes the potential financial
and is a founding signatory to these principles.
impact of climate change on investors’
portfolios as identified through a series
of four scenarios playing out to 2030 and
Oliver Wyman
outlines steps to consider in determining
Oliver Wyman works with clients to navigate sustainability issues and develop practical
changes to asset allocation approaches.
solutions that balance the demands of stakeholders, customers, suppliers and
regulators. Consultants specialize in areas such as low carbon services development,
Mercer teamed with the International
environmental policy and economics, and sustainable products and services innovation.
Finance Corporation, a member of the World
Bank Group, the Carbon Trust, Grantham
LSE/Vivid Economics, industry practitioners
and academics in this collaborative effort.
OUR WORK WITH THE ENVIRONMENT 9
OUR WORK
WITH COMMUNITIES
Our colleagues have a long tradition of helping people and communities
at risk. We are strengthening this spirit of compassion through a more
focused, united and coordinated approach.
Creating a shared strategy and greater impact
From Melbourne to Mexico City, our colleagues are at work in their communities in many ways. Whether it be
mentoring at-risk students, assisting disaster victims, providing pro bono services to nonprofit organizations, or
raising funds for cancer research and other causes, the scope and breadth of their engagement is inspiring. In
2010, we sought to harness this energy by creating a shared strategy and global framework to unite us and help
us move forward together.
We focus our community involvement programs and initiatives on education, health and the environment—issues
that reflect the interests of our colleagues and align with our corporate strategy. As a talent-dependent business,
we recognize the risk of an insufficient pool of qualified candidates, spurring our particular interest in educational
advancement. Because we value the input of our colleagues, we surveyed more than 100 of our Company’s global
community involvement coordinators during 2009 to assess the interest areas, funding levels and scope of their
community and philanthropic activities. In 2010, we began to form strategies around employee interests based on
findings of an internal colleague survey.
When considering partners, we choose those whose missions are consistent with our own and who can benefit from
our colleagues’ deep professional expertise. Last year, we established a partnership with Plan International, which
works to end child poverty in 48 developing countries throughout Africa, Asia and the Americas. We have a presence
in many of the countries this organization serves. Its “Because I am a Girl” campaign—which promotes investment
in and the education of girls and young women—also aligns with our emphasis on talent development and job
training. Our professionals are participating in a human capital consulting project and are developing a strategy
for microfinance and microinsurance for Plan International. During 2011, we will expand our relationship with Plan
International and explore fundraising and employee engagement opportunities with the organization.
Oliver Wyman Group supports Room to Read’s educational outreach for children in Zambia
(pictured) and in other countries of the developing world.
Strengthening CSR governance
We established an enterprise-level Corporate Social Responsibility (CSR) leadership and
organizational structure to provide direction and increase collaboration across our Operating
Companies. We appointed a CSR Director who chairs our newly formed CSR Committee,
comprising senior leaders chosen by each Operating Company CEO as well as two Executive
Committee-level Sponsors. The CSR Director also meets regularly with the Board-level
Corporate Responsibility Committee.
Coordinating our giving
A primary focus of our giving is funding organizations aligned with our mission and goals.
This enables us to build our brand through meaningful partnerships. In 2010, we contributed
over US$5.7 million to roughly 1,400 nonprofit organizations focusing on education, health,
arts and culture, civic and community improvement, and the environment. Colleagues
throughout the United States raised US$125,000 and walked in support of research and
cures for many diseases. In addition, 2010 was the 17th year Oliver Wyman Group colleagues
in Boston, New York, London and Dubai have held charity auctions, raising a total of US$1
million. Through our Matching Gifts to Education program, employee donations combined
with the firm’s matching support provided nearly US$2.6 million to almost 800 educational
institutions across the United States and Canada. We recently launched a Charitable
Contributions Policy that will improve our ability to track charitable giving and provide
guidance concerning our contributions. During 2011, we will implement a reporting tool
that will help us measure impact as a Company and offer tools and resources for employees
globally to engage in their communities. We are also coordinating with our nonprofit
partners to develop methods to better measure the impact of the programs we fund.
In the United Kingdom, Marsh utilizes MAGIC (Matching and Giving for Involvement
with Charities) to match colleague fundraising efforts, either for the Charity of the Year
program or a charity of their choice, up to a maximum of £300 per employee per year.
Mercer and Guy Carpenter also have match-funding programs.
Encouraging employeeS to volunteer
Many of our community involvement initiatives are developed and implemented by our
Operating Companies, which draw upon their local knowledge to respond to community
needs and to create alliances. Whether initiated at the corporate level or arising from
grassroots efforts, these service programs engender a sense of community and cultivate
pride in our organization. Nearly 120 Bermuda employees partnered with Keep Bermuda
Beautiful to clean up local areas during the annual Community Giving Day. During 2010,
we identified and began finding strategic partner organizations and launched a Nonprofit
Learning series for colleagues to become acquainted with those groups and get involved.
Our community outreach efforts include
work with Habitat for Humanity (top), raising
awareness and support for multiple diseases
such as Alzheimer’s (center) and annual
participation in New York Cares Day (bottom).
Mercer and Marsh support colleague volunteering with a policy that grants employees
at all levels paid time off for community service each year, a policy that was expanded to
personnel at Guy Carpenter and our parent company colleagues. This provides colleagues
an opportunity to support programs that are personally important to them while building
morale across the enterprise.
Putting our expertise to work
Our greatest resource is our intellectual capital, which we put to work for communities and
people at risk by providing pro bono services. This benefits both our Company and our
partners. Nonprofit organizations receive world-class consulting, free of charge or at reduced
rates, and we engage with clients, prospects and senior-level decision makers on issues of
shared value—opening doors, building our employment brand and enhancing our corporate
reputation. In addition, our colleagues gain the satisfaction of using their professional skills
to advance issues of personal value.
Colleagues in Oliver Wyman Group have an exceptional record in partnering with innovative
“We could not
have done
this without
you, and we
would not have
wanted to do it
without you.”
John Wood,
Founder
Room to Read
nonprofit organizations that improve the lives of people in the developing world through
microfinance, health care and education. They make the greatest impact by doing what they
do best: using their expertise to help nonprofit organizations evaluate the need for their
services, create new strategies and sustainable business models, improve their operations
and enhance their leaders’ effectiveness. Oliver Wyman Group dedicates its best talent to its
pro bono work and forms high-impact, enduring partnerships with nonprofit organizations to
affect greater positive change.
Access to
health care
in Rwanda
Oliver Wyman Group colleagues provided extraordinary assistance to Room
to Read between 2008 and 2010. This international nonprofit organization is
devoted to breaking the poverty cycle by educating underprivileged children in
the developing world. An Oliver Wyman Group team guided Room to Read in developing a fiveyear strategic plan, and Lippincott helped update the organization’s brand architecture.
Most Rwandans don’t have access to basic,
quality health care, but Zack Scott set out
Over the same period, Oliver Wyman partnered with the following organizations as well:
to change that. Through Oliver Wyman’s
• Women’s World Banking—a global network of 39 microfinance providers and banks
Nonprofit Fellowship Program, Zack
working in 27 countries to bring financial services to women entrepreneurs, enabling
took time off from his position with Oliver
them to build a secure financial future for themselves and their households.
Wyman’s Financial Services business unit in
New York and traveled to northern Rwanda.
There he joined a Wyman Worldwide
• Junior Achievement Worldwide—the world’s largest organization dedicated to
educating students about workforce readiness, entrepreneurship and financial literacy.
• Wyman Worldwide Health Partners—a nonprofit formed by Oliver Wyman Founder Bill
Health Partners project to help develop and
Wyman and his wife, Ro, to improve the primary health care delivery system in Rwanda.
implement a new health care delivery model
• Acumen Fund—a global venture fund that applies entrepreneurial approaches to solve
at the Shingiro and Kabere Health Centers.
problems of global poverty.
Zack used his business skills to help improve
the lives of both adults and children, such
When appropriate, we combine our pro bono support with financial assistance. After
as the one pictured above. He also created
brushfires ravaged Victoria, Australia, in 2009, colleagues from Mercer and Marsh helped
strategies and materials for applying the
small businesses file claims and provided advice for financial recovery. In addition, they
model at additional health centers.
raised A$225,000 for the Victorian Bushfire Appeal through an employee-matching
campaign and corporate donations.
12 OUR WORK WITH COMMUNITIES
Nonprofit Fellowship
Oliver Wyman’s Nonprofit Fellowship (NPF) Program enables junior consulting staff
members to take extended time off from their consulting careers to make a dedicated
personal contribution to a nonprofit organization. Some may work in a developing
country, while others provide strategic support at an organization’s headquarters.
Participants have assisted the Acumen Fund, Children’s Hospital Boston, The Center
for Effective Philanthropy, Chicago Symphony Orchestra, William J. Clinton Foundation,
Kiva, Teach For India, The Nature Conservancy, Oxfam India and many others. Over
100 colleagues have taken part in Oliver Wyman’s NPF Program since it was initiated
in 2001, and all report similar results: new professional skills, immeasurable personal
growth and an unforgettable experience.
Partnering with Communities
We also forge relationships with targeted groups to create awareness of the
opportunities in our industries, promote our ability to recruit diverse talent, and
support the goals of those communities. We established new partnerships in
2010 with the Asia Society, the Hispanic Association on Corporate Responsibility
and the American Association of People with Disabilities, adding to an already
moving
forward
in 2011
Institute methods for
tracking employee
volunteering and
streamlining our
charitable giving
processes
Embed a CSR education
component into
onboarding program for
new hires
Expand pro bono
program to all Operating
Companies
extensive roster of partner organizations. Through our involvement with educational
programs, including Prep for Prep and Cristo Rey High School, we help at-risk
communities while creating access to diverse talent pools.
A Model Program
Marsh took home top honors in the 2010 British Insurance Awards, winning the Corporate and Social Responsibility Award for its
program’s coordinated approach and broad scope. Marsh’s efforts are aligned with the work of our U.K. Marsh & McLennan Companies
CSR Team, which manages activities across all of our Operating Companies. This coordinated approach multiplies impact and fosters
a sense of community throughout our organization. U.K. activities include the successful Charity of the Year program, multiyear
partnerships with eight national charities, match-funding programs, colleague volunteering, and environmental sustainability. This
synchronized approach, which gained notable support from CEO Brian Duperreault, serves as a model for our CSR initiatives elsewhere.
Now in its fifth year, the Marsh & McLennan Companies U.K. Charity of the Year program raises more than £150,000 over an 18-month
period for a designated charity chosen by U.K. colleagues. For 2010, funds benefited CLIC Sargent, one of the United Kingdom’s largest
children’s cancer charities. A network of 80 colleagues planned monthly fundraising events as well as the annual Team Walk Challenge,
during which 400 colleagues raised over £12,000. In April 2010, the London Marathon provided an opportunity for colleagues to join
London Marathon Cheering Zone events (pictured), raising an additional £2,300 for CLIC Sargent.
OUR WORK
WITH PEOPLE
We aspire to maximize the potential of our colleagues through our
approach to human capital and by building an inclusive workplace in
which each individual can achieve excellence.
In today’s knowledge-based economy, human capital is a primary asset. We can only achieve our goals and
objectives through committed, motivated and engaged colleagues. It is through the efforts of extraordinary
people at Marsh & McLennan Companies that we have been able to develop and drive our citizenship agenda.
During the past year, we launched many human capital initiatives, including work in diversity and inclusion at
both the global and Operating Company levels—initiatives that reflect the value we place on our colleagues.
Likewise, we continue to expand our extensive array of human capital solutions to help our clients address
their own workplace challenges.
Our Commitment to our Colleagues
Listening to our colleagues is a priority, as evidenced by our sustained effort and commitment to connect with our
people. In 2010, we analyzed and responded to the results of our 2009 Colleague Engagement Survey, our first allcolleague assessment, which achieved a 66 percent response rate. Asking colleagues what they think and listening
to their responses gives us a better understanding of their needs, enables us to include their voice in our action plans
and increases engagement and trust.
Survey results identified four key drivers of colleague engagement for us: career development; leadership and
strategic direction; tools and infrastructure to enable colleagues to do their jobs; and colleague rewards. We
developed an array of responses to address these areas. A series of follow-up pulse surveys conducted in 2010
indicated that colleagues have seen measurable improvements in career development opportunities and in the
leadership and strategic direction of the firm.
Colleagues, such as this participant in our Financial Leadership Development Program, have opportunities
to pursue learning and development activities at many points in their careers—entry, middle and senior level.
We used online discussion boards—our first social media pilot that included all colleagues
globally—to further explore issues raised in the survey and help focus our response. We
asked colleagues for their ideas regarding how best to meet their needs, and their response
was extraordinary: 32,494 visits, 10,818 votes and 529 posts, far exceeding expectations.
This global “conversation” brought people together from more than 25 countries and 99
cities on six continents. Colleagues who might never have been able to attend a focus group
in person had equal opportunity to engage in a discussion about improving the enterprise.
Marsh
University:
Social Media
Powered
Learning
This dialogue was pivotal in shaping our responses.
At Marsh, everyone is a teacher. Marsh
We will build on this rich dialogue with our colleagues by continuing online discussion
University, Marsh’s new social media
boards, measuring our progress through quarterly pulse surveys of 25 percent of colleagues,
platform, is a cutting edge approach
and conducting another Colleague Engagement Survey in 2011.
to facilitate knowledge sharing and
relationship development, where Marsh
Our businesses also have unique ways of communicating with their colleagues. Many
invites its colleagues to share their expertise
conduct regular town halls with their senior leadership or utilize electronic communications.
and learn from one another. This global
At Oliver Wyman Group, colleagues communicate and connect through POW!—People of
platform supports a variety of rich media
Oliver Wyman Group—a social networking and knowledge sharing site. And, in an effort to
formats through blogs and videos, and
share ideas and create a more integrated human capital strategy across the firm, the global
enables “atomized learning” (short,
human resources leaders from across all of our businesses came together in person for an
insight-rich content). Additionally, by
intense working session in April 2010. A key outcome of that event was a Human Resources
sharing their own backgrounds and profiles,
Commitment that expresses a common vision for creating a collaborative global HR
Marsh colleagues build strong internal
community that will provide innovative leadership—a commitment that will benefit all of our
relationships—across the world, across
Marsh & McLennan Companies colleagues.
practices and across business units. In just
three months, more than 9,000 colleagues
created profiles, including their expertise
Connecting our colleagues
and interests. Marsh will also launch both a
global ambassadors and a certified bloggers
program to increase everyone’s capability
with social media software.
We are upgrading our human resources technology infrastructure to provide colleagues
with greater access to information. For much of 2010, a cross-enterprise team identified
the business requirements for this initiative and developed implementation plans for two
new portals: PeopleLink and CareerLink. PeopleLink provides payroll, benefits, wellness and
career-related information. CareerLink, our Company’s first ever enterprise-wide, performance,
talent and learning platform, will give colleagues access to tools for developing their skills and
progressing their careers.
OUR WORK WITH PEOPLE 15
Promoting wellness
In 2010, we began to explore the “wellness” aspects of our employee value proposition in
the United States. Our U.S. health benefits have historically covered 100 percent preventive
care, a key foundation for any wellness effort. We also offer U.S. Employee Assistance and
Life Care Services programs, which assist colleagues in coping with life issues and identifying
family resources and services to support them. In 2010, we implemented a series of new
wellness initiatives, including an enterprise-wide ergonomics program to address workplacerelated stress injuries and healthy food choices in our cafeterias in U.S. locations. Based on
an analysis of U.S. colleagues’ health claims, we created a new initiative called “Healthy Me,”
which is rolling out in 2011.
Strength through diversity
Diverse teams create better solutions. Inclusion fosters engagement. These are two
premises that drive Marsh & McLennan Companies’ commitment to cultivate a broadly
inclusive workplace environment. We believe that diverse perspectives contribute to greater
innovation and exceptional client service.
Over the past two years, we have laid a strong foundation for a firm-wide diversity and
inclusion strategy that seeks to create an even more visibly inclusive culture across our
organization. To do this we conducted research and benchmarking, built a global diversity
leadership structure, identified key external partners who can support us through intellectual
capital and resources, and strengthened our Employee Resource Groups. We know that a
strong approach to diversity and inclusion can position Marsh & McLennan Companies as
an attractive brand for top talent, help fulfill our corporate social responsibility agenda, and
enhance the offerings and services we provide to the marketplace.
We are committed to increasing the number of women in leadership in our organization
globally, strengthening the leadership representation of colleagues of racially and ethnically
diverse backgrounds in the United States, and enhancing a culture of inclusion for all
colleagues, including LGBT (lesbian, gay, bisexual and transgender) colleagues as well as
colleagues who are living with—or caring for others with—disabilities.
www.mmc.com/diversity
Advancing
colleagues’
careers
Marsh & McLennan Companies offers
career development programs for
both entry-level and established
colleagues. The Corporate Finance
Group recruits MBA graduates for its
best-in-class Financial Leadership
Development Program, which
provides rotational opportunities
across the Company. Guy Carpenter
created a Global Analytics
Immersion Program, a 12- to
18-month learning experience that
gives new hires the deep analytic
capabilities that today’s complex
market demands. Marsh’s Risk
Analyst Program continues to be
an important source of entry-level
talent for that business. Mercer
offers development experiences
through a stepped learning curric-
Benchmarking
Benchmarking conducted with external partners enables us to evaluate the status
of our Company’s diversity initiatives relative to industry peers. Marsh & McLennan
Companies added the resources of the Chief Executive Women’s CEO Kit in Australia and
Opportunity Now in the United Kingdom, in addition to existing benchmarking through
Catalyst in the United States. These tools and organizations provide a framework for
promoting, attracting and retaining talented colleagues.
16 OUR WORK WITH PEOPLE
ulum that culminates in its “Helping
Leaders Succeed” program. Oliver
Wyman’s consulting staff benefits
from regular career discussions with
their advisors and partner teams to
identify paths for advancement.
Creating accountability
Our leadership ensures accountability through the global Marsh & McLennan Companies
Diversity Council, comprising senior business leaders from each Operating Company. These
leaders are responsible for executing firm-wide diversity and inclusion initiatives within their
businesses, including managing their own local diversity councils, and are accountable to the
Marsh & McLennan Companies Executive Committee. Key diversity and inclusion initiatives
across all of our Operating Companies are coordinated through Operating Company
Diversity Leaders in each business and a Chief Diversity Officer.
Engaging leaders
In 2010, Marsh & McLennan Companies’ leadership embarked on a significant initiative to
Youths from the Harlem YMCA presented the
Company with this collage in appreciation
of our participation in its Black Achievers in
Industry (bai) scholarship program.
better understand and plan the organization’s diversity and inclusion strategy. Senior business
and diversity leaders from each Operating Company, including our CEO and Executive
Committee, engaged in Diversity Leadership Dialogues to explore their personal and organizational commitment to diversity and inclusion, and create a strategic plan for attracting and
retaining diverse talent. In addition, University of Michigan Professor Scott E. Page, author of
The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies,
addressed a broad group of leaders regarding the empirical data and evidence that supports
A top-rated
supporter
of human
rights
the observation that diverse teams drive better and more innovative results.
In the United States, Marsh & McLennan
Members of GLOW (Gays and Lesbians at Oliver Wyman) met with members of the Oliver
Companies publicly lent support to the
Wyman Group management committee during a series of “reverse mentoring” sessions
proposed Employment Non-Discrimination
that created a comfortable environment for leadership to learn about the LGBT community
Act by adding our name to the Business
at Oliver Wyman Group, its experiences and challenges, and how to build an even more
Coalition for Workplace Fairness led by the
inclusive culture.
Human Rights Campaign (HRC). For the
third consecutive year, Marsh & McLennan
Mercer piloted a new multiyear, multimedia, “Managing Inclusion” training program for
Companies received a 100 percent rating
managers in selected U.S. offices. This two-tiered program, demonstrating how sound
in the Corporate Equality Index (CEI), an
diversity and inclusion practices impact productivity and boost employee engagement, will
annual survey administered by HRC. The
continue to be rolled out during 2011. In a related effort, more than 1,000 Mercer colleagues
CEI rates employers on how inclusive their
participated in a nine-part series of online multicultural webinars.
culture, policies and practices are for lesbian,
gay, bisexual and transgender employees,
In a groundbreaking diversity initiative, senior leaders from Guy Carpenter and Marsh
consumers and investors. As a top-rated
partnered with Heidrick & Struggles, a leading executive search firm, to convene a first
Company, we are included on HRC’s list of
Insurance Diversity Roundtable for the industry. More than 60 senior business and diversity
Best Places to Work.
leaders from leading insurance and reinsurance companies and brokers across the United
States gathered for two days of discussion and education, and began identifying the particular
challenges the industry faces in attracting and retaining diverse talent. Follow-up teams
outlined potential actions and solutions. The roundtable will reconvene in 2011 to begin
implementation of select solutions.
OUR WORK WITH PEOPLE 17
Supporting diversity through development
Employee Resource Groups have long existed in various businesses and regions
throughout our organization. In 2010, we ensured that each of our Operating Companies
sponsored Employee Resource Groups in support of women, racially and ethnically
RECRUITING
DIVERSE
TALENT
diverse colleagues in the United States, LGBT colleagues and the disability community.
Some of our businesses have established additional groups such as those focusing
Recruiting top talent is mission critical
on young professionals at Guy Carpenter and community involvement at Mercer.
for a firm like ours whose product is its
Our current goal is to link and coordinate among these constituencies so that our
intellectual capital. We are expanding our
colleagues’ collective voice is even greater and more powerful.
talent pool through strategic partnerships
that extend our reach to new candidates
and talent pipelines such as Sponsors for
Educational Opportunity, the National
Black MBA Association and the National
Society of Hispanic MBAs.
Together with Heidrick & Struggles, we
created a unique recruiting concept, the
Inclusion Network, to attract a broader
and more diverse talent pool to ensure
we identify the best talent for the job. The
network includes six minority-, LGBT- and
women-owned search firms that work
with Heidrick to fill senior-level positions
Cristo Rey High School students, including this Williams College-bound senior,
work with us to help fund their education and gain valuable workplace skills.
and to engage in other innovative talent
sourcing initiatives such as market scans
and invitational candidate meetings. The
For a second year, high-potential colleagues of racially and ethnically diverse
Inclusion Network not only identifies a
backgrounds in the United States were invited to participate in professional
broader pool of talent, it also increases
development, networking and coaching through our partnership with Management
brand awareness of Marsh & McLennan
Leaders for Tomorrow (MLT). MLT’s reach into Fortune 500 companies provides our MLT
Companies in diverse communities and
graduates with a broad and strong program in which they participate in mentoring for
contributes to our supplier diversity efforts.
six months and have access to a lifelong network of top talent. Senior business leaders
continued their support and participation in development opportunities provided by the
Executive Leadership Council, the premier organization for senior-level African American
colleagues in U.S. corporations. As noted previously in Our Work With Communities,
Marsh & McLennan Companies also joined Asia Society, including its diversity council,
the Hispanic Association on Corporate Responsibility, and the American Association
for People with Disabilities to expand our external support structure for diversity. We
continued our support of LGBT colleagues through participation in conferences such as
the Out & Equal Workplace Summit.
18 OUR WORK WITH PEOPLE
www.mmc.com/careers
Advancing business through women in leadership
Our businesses have taken great strides to align their women’s Employee Resource Groups
with their clients’ agendas.
Within Marsh, three organizations support the development of women. The GEC Women’s
Group provides networking for women who are part of the Global Executive Committee (GEC)
and supports senior leaders in the implementation of Marsh’s diversity and inclusion strategy.
The Women’s Internal Network (WIN) welcomes all women in Marsh’s New York metro area
offices, creating networking and learning opportunities for its members. Marsh’s client-facing
colleagues also created chapters of WEBB, the Women Executives Business to Business, in
New York, Baltimore, Washington, D.C., Atlanta and Los Angeles, to forge relationships with
clients and prospects around shared interests and values. Marsh is also a sponsor of Dress for
Success and hosts their monthly Professional Women’s Group.
The Vine, a well-established women’s resource group within Mercer’s U.K. operations, proved
its value to Mercer’s commercial success. In 2010, The Vine raised client awareness of Mercer
as an inclusion-aware consulting partner through a major event hosted in conjunction with
the European Professional Women’s Network, a significant professional global network.
Guy Carpenter launched its Women’s Employee Resource Group with a global webcast
connecting women across its businesses for the first time. Guy Carpenter will continue driving
this global effort through further networking opportunities and mentoring initiatives in 2011.
The Company’s Asia Pacific Women’s Network engages colleagues from regional countries
including Australia, China, India and Singapore in professional development. Members
are raising funds for early childhood education in rural China through a relationship with
Plan International. The group’s members also build relationships with clients by hosting
networking events around key women’s issues, including one featuring Australian Olympic
moving
forward
in 2011
Conduct second Colleague
Engagement Survey
Launch “Healthy Me”
Increase employee
involvement in and
collaboration among
Employee Resource Groups
Expand reverse mentoring to
more participants and among
broader constituencies
Expand our engagement with
clients around diversity and
inclusion initiatives
Launch a supplier registration
website
Develop strategy to capture
and drive Tier 2 spending with
preferred suppliers
sprinter, Cathy Freeman.
Supplier diversity
Our commitment to diversity extends to cultivating relationships with minority-, women-,
and LGBT-owned businesses as well as small businesses. We believe this is essential to
our overall success and contributes to economically vital communities. Through active
participation in U.S. and U.K. diversity organizations, we learn of qualified and certified
diverse suppliers. We also meet regularly with diverse suppliers to qualify them, introduce
our needs and provide instruction and mentoring. We include qualified diverse suppliers in
formal Requests for Proposal (RFPs) conducted by our Global Sourcing and Procurement
function, and also track our spending with diverse suppliers on an ongoing basis.
www.mmc.com/diversity/supplier
OUR WORK WITH PEOPLE 19
Helping our clients maximize human potential
Mercer and Oliver Wyman are global leaders in helping organizations maximize the potential of their people and their
leaders, and have highly regarded services focused on developing human capital.
Mercer
Mercer helps clients effectively and efficiently manage their human capital. As organizations advance their corporate
social responsibility agendas and gain the advantage of a diverse workforce, Mercer has expanded its services to meet
this need.
Many U.S. employers are exposed to pay equity risk due to the Lilly Ledbetter Fair Pay Act of 2009, which eliminates
the time limit for individuals to file claims of pay discrimination. Mercer’s Human Capital business furthers clients’
efforts to measure and mitigate these risks using its Pay Equity studies and proprietary Pay Equity Calculator.® Mercer’s
Internal Labor Market Analysis® tools enable clients to measure and understand their own labor force, ensure equity
and fairness, and link their human capital programs with business results. In addition, Mercer helps clients design
compensation, retirement and benefit programs; manage risk related to harassment and discrimination; and confront
gaps through career channeling and glass ceiling assessments.
In mid-2010, Mercer acquired ORC Worldwide, a leader in human resource information and consulting services. As
a result, Mercer expanded its capabilities in global equality, diversity and inclusion (GEDI); environment, health and
safety (EH&S); labor and employment policy; and global development consulting to international nongovernmental
organizations. Mercer’s peer networks provide a forum in which hundreds of the world’s top companies share best
practices and benefit from insights on emerging issues.
Oliver Wyman
Oliver Wyman’s Leadership Development business creates customized leadership solutions for a wide range of
Global 1000 organizations. Its work with clients accelerates the development of leadership as a source of competitive
advantage and provides high-impact human capital strategies to drive organizational performance, even during times
of crisis such as the recent global economic slowdown.
Business relationships can become even stronger as colleagues, such as these from Greater China, find
opportunities to work together through learning, development and service activities. ABOUT THIS
REPORT
The Marsh & McLennan Companies Corporate Citizenship Report is written for our clients,
CONTACT US
colleagues, investors, nongovernmental organizations and others with an interest in
Your feedback is important to us. We
our approach to Corporate Citizenship. The report’s focus is on our accomplishments in
invite you to provide ideas for advancing
environmental sustainability, corporate social responsibility, diversity and other areas that
our citizenship activities. Please send
demonstrated our Company’s citizenship in 2010. The Company’s financial performance
your comments to the following address:
is covered in our 2010 Annual Report for Shareholders, which is available online at
corporatecitizenship@mmc.com.
www.mmc.com.
© Copyright Marsh & McLennan
Companies 2011
SCOPE
All rights reserved
This report covers data, initiatives and accomplishments for Marsh & McLennan
Companies’ global operations, including our Operating Companies. Performance data
Produced by RKC!
is primarily for 2010, unless otherwise noted. In some cases, information for early 2011
(Robinson Kurtin Communications! Inc)
is also included to give an up-to-date picture.
Strategy and content by
CRM Communications
Reporting Standards and Assurance
Page 8 photo by Steve Hall
This report was developed in line with the Global Reporting Initiative (GRI) G3 Sustainability
© Hedrich Blessing Photography
Reporting Guidelines, which provide a standard framework for organizations to report
Interior design by Perkins+Will
on their social, environmental, governance and economic performance. We draw on
guidance from the Greenhouse Gas Protocol for our carbon reporting. The content received
internal review by subject matter experts, the Corporate Citizenship Report team, and our
Company’s leadership to ensure that it fairly represents our citizenship activities and results.
Future Reporting
It is our intent to produce future reports on our progress toward the goals outlined in this
report as well as material GRI G3 performance indicators as referenced above.
Our Valued Partners
We partner with a wide range of organizations in the course of conducting our business,
strengthening communities, supporting workplace equality and reducing our environmental
footprint. For a list of these organizations, visit www.mmc.com/CorporateCitizenship.
21
Marsh & McLennan Companies, Inc.
1166 Avenue of the Americas
New York, NY 10036
www.mmc.com