Arthur J. Gallagher & Co. (AJG) is a US-based global insurance brokerage and risk management services firm headquartered at the Gallagher Centre in Itasca, Illinois (a suburb of Chicago). AJG was established in 1927 and since then has grown to become one of the largest insurance brokers in the world.
Stiff competition in a crowded domestic market had put steady downward pressure on property and casualty premiums during the 1990s and dating back to the late 1980s. But Gallagher was still able to record double-digit growth in all but three years from 1990 through 2000, according to Investor’s Business Daily.
Gallagher’s size gave it an advantage and helped it gain larger, more profitable clients and outpace the thousands of small brokerages vying for a piece of the market. Those smaller firms also had been buyout targets for Gallagher. The firm scooped up 16 more during 2000. Gallagher had grown its presence to include about 50 U.S. cities.
In July 2011 Arthur J. Gallagher & Co. was ranked fourth in Business Insurance’s world’s largest brokers list.
A history and the shared values of AJG were documented by Robert E. Gallagher and Alison Kittrell in a book called The Gallagher Way, published in 2005 by Marketing Counsel and iUniverse.
Corporate Social Responsibility: AJG Gives Service for Nonprofit Organizations.
At Arthur J. Gallagher we know the importance of being a socially responsible company. That is why we strive every day to promote environmental, social and economic benefits to the communities in which we live and work. We believe in running our business with integrity and strong values, and pride ourselves in a culture that embodies both.
The Gallagher culture empowers employees to serve our communities by supporting our favorite charities and organizations. And, to assist in those efforts, the Gallagher Matching Gift Foundation matches qualified employee donations each and every year.
Whether we are working to help our communities, the environment or striving to always be an ethical company, Gallagher’s employees are making a difference around the world.
Social responsibility and a sound commitment to ethical behavior have been cornerstones of our operating philosophy ever since my grandfather, Arthur J. Gallagher, founded this company in 1927. We have always believed in running
our business with integrity and strong values.In good times and in challenging times, we have focused on maintaining our team’s moral compass and continuing the course set by our founder. And, in 2014, we were delighted to receive word that our company had been named to the Ethisphere Institute’s list of the World’s Most Ethical Companies for the third consecutive year.
Our position on Social Responsibility is best shared in a document that we call The Gallagher Way, which was written in 1984 by my uncle, Bob Gallagher, then promoted throughout our organization by my father, John P. Gallagher. Today, it remains the most important document that we have in our company. You will find The Gallagher Wayat the end of this report and I invite you to read it in its entirety; it will help you to understand who we are and why we choose to work at Gallagher.
Several times over the years people have suggested to me that we rewrite The Gallagher Wayto make it more relevant to the 21st Century. Quite frankly, no better words come to me. It is true that the document was not composed by a professional writer and that is clear when you read it. But the message is timeless and I see no reason to make a change. The values expressed by my uncle in 1984 are the same as those established by my grandfather in 1927 and they will carry us through this century as well. Just consider the following tenets:
- “It support one another. We believe in one another. We acknowledge and
respect the ability of one another.”
- “Loyalty and respect are earned—not dictated.”
- “It are a warm, close company. This is a strength—not a weakness.”
Each year every Gallagher employee reviews and commits to a Code of Conduct and Ethics, a document that describes our obligation to conduct ourselves in accordance with legal and ethical guidelines. But we view that document as setting just a minimum standard of behavior.
We call upon our employees to embody ethical behaviors that go beyond legal compliance. In our view, ethics is all about values; it is what we as a group of people have agreed that we should do. Those values are spelled out in The Gallagher Way, and we witness them in the actions of our employees each and every day. We also remind our employees on a regular basis of the commitment we have made to live by those values. Here are some of the things that we do in that regard.
- The Gallagher Wayhangs in a prominent place on the wall of every office within our company all over the world, and it is also posted prominently on our website and on our intranet. Employees are encouraged to take time on a regular basis to read this document and recommit to its principles.
- If our employees witness potential lapses in ethical conduct, we encourage
them to share their concerns with their managers or with any other person of authority within the company. In the event that an employee is uncomfortable communicating his or her concerns in person, an anonymous reporting system is in place via a toll-free hotline. The information is then routed to our legal department and directed to the most appropriate department within the company for investigation and action.
- We employ a highly skilled team of professionals within each of our operating divisions who are responsible for monitoring and assessing Professional
Standards. They help to ensure that all insurance activities are completed in accordance with our corporate guidelines to protect our clients and our business partners.
- Each year, our Corporate Vice President of Ethics and Sustainability visits approximately 100 of our domestic and international offices to hold small group meetings with employees to discuss Gallagher’s shared values and to listen to their hopes and concerns. Although the identities of these individuals are kept confidential, their feedback is communicated directly to Gallagher’s senior management team. These meetings provide valuable information regarding the morale of our employees and the effectiveness of our programs.
As it says in The Gallagher Way, “Shared values at Arthur J. Gallagher & Co. are the rock foundation of the company and our culture.”
