

ON VOCATIONAL SERVICE
No matter how much we like to think that Paul Harris and his friends
created Rotary for such noble ideas of humanitarian service, goodwill
and world understanding -- it just was not the case.
Rotary was started for business reasons and professional purposes.
Paul Harris had the unusual idea that friendship and business might mix
and result in even more business!
A century ago, Chicago and most large cities were in the grips of growing
business and industry - and rife with fierce competition. Such slogans as
"Cutthroat Competition," "Let the Buyer Beware," "Dog Eat Dog," and "The
Public be Damned," were commonplace in the lives of the giants of industry.
Business competitors were the enemy. There were very few governmental
restraints on enterprise, business practices or labor conditions. And
business ethics, customer service, or professional standards were seldom
topics of real concern. Just making money was the goal of business.
It was in this atmosphere that Paul Harris began to wonder if one person
from each business and profession could actually work together, in a
non-competitive atmosphere, to help each other improve their business and
income. If they were not rivals or competitors, they could be friends and
help each other achieve success. Thus, the idea of friendship and business
was combined -- and the idea of a Rotary Club evolved.
As a matter of fact, the constitution of the Chicago Rotary Club, written in
January of 1906, stated two objects of Rotary. The first was "The promotion
of the business interests of its members." The second object was the concept
of friendship. This idea of business as an object of Rotary was retained in
1912, when the International Association of Rotary Clubs adopted a statement
with 5 Objects of Rotary.
Although the business concept had evolved to a broader statement, it was
still listed as number one -- "To promote the recognition of the worthiness
of all legitimate occupations, and to dignify each member's occupation as
affording him an opportunity to serve society; to encourage high standards
in business and professions; and to increase the efficiency of each member
by the exchange of ideas and business methods."
Although the wording changed slightly from time to time as the Object was
rewritten in subsequent years, the vocational service element was always
retained. I found an interesting comment, which was made by T.A. Warren, a
British Rotarian in l935, which was printed in a book on the early history
of Rotary in Great Britain. T.A. Warren, became RI President in l945-46,
stated this opinion: "The only unique feature of Rotary is vocational
service; everything else that we do is repeated by some other organization.
If we are unique, if we have a special message or mission in the world that
is unique to ourselves, it lies only in the realm of vocational service."
In all of our earliest days, Vocational Service was clearly the primary
focus of Rotary.
So, let's explore two separate directions of this unique business emphasis
of early Rotarians.
The first, could be categorized as "Rotarians helping each other." The
members of Rotary were expected to patronize each others businesses, and
recommend their fellow Rotarians to their friends and relatives, who needed
goods or services. At the early Rotary meetings, a common practice was for
each member to report on which Rotarians he patronized during the past week,
or recommended to others. The early clubs had a club officer called the
statistician, whose duty was to compile each week all the orders that had
been given or received by members.
One story I heard from an early member of the Oakland #3 Rotary Club
involved a member who was a haberdasher or clothing storeowner. During the
meeting, he slipped out into the hallway where the members had hung their
hats -- and checked the labels in each hat. He stormed into the cub meeting
and announced that "Some of you Rotarians have purchased your hats from my
competitor. That's not the Rotary way! So, I quit this club!" And he did. He
truly was a "mad hatter." But that was the concept -- Rotarians helping each
other in their business and professional pursuits -- and expecting others to
do the same.
The History of the San Francisco Rotary Club tells of the early emphasis on
promoting business at club meetings. As you know, San Francisco was Rotary's
#2 club, and it was a custom that prizes were frequently awarded at club
meetings to the member who had made the most purchases from other members
during the previous month. Past RI President, Bru Brunnier, a charter member
of the San Francisco Club reported that he won the prize one month by buying
72 separate items from as many Rotary members to furnish his new engineering
office in downtown San Francisco.
It was also recorded that in the meeting room of the San Francisco Club a
series of shelves were installed for members to display merchandise. Ten
minutes of each meeting were devoted to members giving short talks about the
quality of their own goods and services -- or in other words -- a Rotary
commercial.
On some occasions, the "Rotating Five Dollar Bill" was used. This would be a
five dollar bill with a slip of paper attached, on which a Rotarian would
sign an endorsement when he purchased an item from another Rotarian. He in
turn would use the bill to purchase an item from a fellow member, and around
it went. At the next club luncheon, the five dollar bill, with all the
endorsements, would be exhibited as an example of the practical application
of the concept that Rotary promoted business.
San Francisco members were also urged to send advertising literature to each
other's homes so wives would know where to make Rotary purchases.
It was this same concept of promoting business which led to the first
community service project of the original Chicago Rotary Club. In their
effort to promote more business, the members decided that since the women
did most of the shopping in downtown Chicago, they would do even more if
they stayed downtown longer. So, what was the answer? If they put public
toilets in downtown Chicago - the shoppers would not have to go home so
soon. And that is what they did -- installed the first public restrooms in
downtown Chicago. When service is provided -- business is enhanced. It was
on that basis that the world's service club movement was launched.
It was Leslie Pidgeon, the RI President in 1917, who stated: "The primary
object of Rotary is to relate the individual properly to his daily work.
That is the first duty Rotary has to perform. The Rotary Club must educate
the members to embody the idea of service in their own daily work." It is
interesting to note that Leslie Pidgeon, was the first Canadian, and first
non-American to become President of Rotary International. He was a minister
of the United Church, who first joined the Vancouver Rotary Club, and
belonged to Winnipeg Rotary when he became RI President.
ISo, from the very beginning, Rotary membership was based on classifications,
and classifications were based solely on one's business, profession of
vocation.
The second direction which the early Rotarians took was to promote higher
ethical standards in business and professional practices. It was said that
in the early meetings of Rotary, the members frequently discussed techniques
to improve the business practices and offered wise and friendly counsel to
each other. If a Rotarians' advertising seemed misleading, if members heard
negative comments about the quality of another member's products, or if
there were steps a member could take to greet his customers in an improved
manner -- those, and many other business topics might be fair discussion at
a weekly club meeting.
Soon, the members and their friends began to feel that when you do business
with a Rotarian, you were always going to be treated properly, that their
word could be counted upon, and that there was an ethical element in all
transactions. Thus, the word "Rotarian" was considered a mark of distinction
in the business world -- equivalent to the mark of "sterling" found stamped
on a piece of high quality silverware.
The Chicago Rotary Club, and others which followed, created a "Committee on
Business Methods" which concentrated attention on the business and ethical
practices and public confidence of each enterprise in their community.
Rotary Clubs were regarded as leaders in fighting corruption and unfair
business practices. It was as early as 1910, that Rotarian Arthur Sheldon,
spoke at Rotary's first Convention in Chicago, saying: "As man comes into
the light of wisdom, he comes to see that right conduct toward others pays;
that business is the science of human service, and that he profits most who
serves his fellows best. Thus, one of Rotary's first mottoes came into being
-- a basic principle of business ethics.
In passing, it might be noted that just a year later at the 1911 conference
in Portland, Oregon, Ben Collins, President of the Minneapolis Rotary Club
told that his club used the principle of "Service Above Self" in all of
their business and professional activities. And our second motto was
initiated. Both of these mottoes were officially adopted many years later at
the 1950 Convention in Detroit.
As Rotary continued to expand around the nation, it was not uncommon for
Rotarians in the same profession to meet and discuss business ethics and
fair dealings in business practices. They frequently discussed "standards"
by which business and professional practices should be judged. So, after
several years of preparation and debate, in 1915, Rotary was ready to adopt
a "Rotary Code of Business Ethics" when they met at the annual Conference
in San Francisco.
The "Rotary Code of Ethics" was not a law or rule, but rather it was on
expression of determination to maintain certain basic ethical and honest
standards in one's business or profession. The code could only be enforced
by example and friendly influence and encouragement. The Rotary Code of
Ethics set a high standard for men who were to be Rotarians.
As the years went by, and Rotary became more of an international
organization, "The Rotary Code of Business Ethics" became more difficult to
translate and use as a working document in the changing business and
professional life. In 1978, the Code was withdrawn from circulation, and the
1980 Council on Legislation approved an amendment to the RI By-laws to
delete any reference to the Rotary Code of Business Ethics in all future
literature and publications of Rotary International. So that is why, many of
you may not have heard of this document which had such a significant impact
upon the early development of Vocational Service.
I first heard the phrase, Rotary Code of Ethics, when I was a very new
Rotarian and was invited to attend, along with about a dozen other new
members, a Rotary information evening. The host of the evening dinner was
Les Hink, the owner of Hink's Department Store in Berkeley, and probably the
community's most influential person. It was an honor to be in the home of
this distinguished Rotarian.
Before the evening ended, Les Hink told a story, which I have remembered for
45 years. He said, "When a group of my friends were trying to charter a
Rotary Club in Berkeley in 1916, I told them I really wasn't interested in
some luncheon club. But, one day, a friend brought me a copy of Rotary's
Code of Business Ethics, which I read, and read again. I thought if this is
the kind of organization which believes in honesty, fair play, high ethical
standards, and decency in business practices.-- then I want to belong to the
Berkeley Rotary Club." And he joined. As he concluded the evening, he came
to each one of us, and personally gave us a parchment scroll, rolled as a
diploma, and tied with a ribbon -- it was the Rotary Code of Business
Ethics. When he joined Rotary in 1916, it was the most important reason for
him to become a Rotarian.
In the years following World War I, dozens of trade, manufacturing and
professional associations developed and adopted codes of business and
fair practice standards. Automobile dealers, sales organizations, restaurants,
travel agents, and many other professional associations drafted new standards
of business methods which recognized that each had an opportunity to
serve society -- as well as eliminate the sharp and shady practices which
had been so customary in many industries. Many of these occupational
improvements were led by Rotarians who frequently met at
Rotary Conventions in vocational groups to discuss business practices
and improved business methods.
It was in 1927 that the confusion of referring to Rotarians' "business,
profession, calling, occupation, employment or trade" was finally eliminated
by adopting the word "vocation." The term 'vocation' seemed to cover every
type of useful occupation, so the Rotary convention, held in Belgium in
l927, approved the words "Vocational Service" to replace business methods.
When the Object of Rotary was later rewritten, "Vocational Service" became
the Second Avenue of Service for Rotarians and Rotary Clubs.
In l943, another significant step was taken when the Rotary Board of
Directors adopted a 24 word statement on business practices -- originally
written by Rotarian Herbert J. Taylor of Chicago. The statement became known
as the "Four Way Test," and became a guide for sales, promotion, advertising
and all relationships with dealers, customers and employees. The simple
philosophy of the 4-Way Test was created by Herbert Taylor in l934, during
the Great Depression, when he was called upon to take charge of the
Chicago-based Club Aluminum Company, which was facing imminent bankruptcy.
He created the test as a measure of the company's fairness, honesty and
integrity in all of their business transactions. It became a personal
standard for making business decisions.
Of the things we think, say and do: Is it the Truth? Is it Fair to All
Concerned? Will it build Goodwill and Better Friendships? Will it be
Beneficial to All Concerned? The 4-Way Test is not a code, creed, or
pledge, but rather four questions for self-examination and improvement of
one's dealings with others. It is a simple and practical guide for all human
relationships. The Test has been printed on thousands of articles, plaques,
billboards, and posted in school rooms and public buildings, and been the
topic of hundreds of essay and speech contests.
Herbert Taylor became President of Rotary International in l954-55, the 50th
anniversary of Rotary. As you might imagine, the use of the 4-Way Test was
one of the six objectives of Herb Taylor's Presidential theme. Over the
years, the 4-Way Test has become firmly imbedded in the Vocational Service
Avenue of Rotary.
In the l960s another new idea was introduced to Rotary Clubs as a means to
promote Vocational
Service -- the Case Study of principles and new methods of handling business
situations. This technique, which had long been used in universities and
business schools, became a valuable practice to promote vocational service
and share business experiences in Rotary Club meetings, conferences and
assemblies.
A booklet, called "Lets Get Down to Cases" was published by Rotary to assist
clubs in setting up cases for discussion and analysis. The cases, and
occasional playlets usually would include business dilemmas which had
serious ethical problems for managers, or conflicting interests among
employees, stockholders, customers, and suppliers. In the case studies,
there usually was no "right answer," but rather they provided the
opportunity for Rotarians to explore moral, business and ethical dilemmas.
Vocational Service gradually emerged into a wide variety of other Rotary
activities, as many clubs developed vocational guidance opportunities to
assist young people in exploring and selecting their future business and
professional careers. Around the world, Rotary clubs sponsored vocational
experiences for young people; such as job interview training, vocational
guidance camps, vocational schools, Camp Enterprise, Junior Achievement, and
career information sections in public and school libraries. Other Rotary
clubs have initiated special vocational programs for disabled persons to
enable them to perform useful occupations. In l965, The Rotary Foundation
established one of Rotary's most popular and rewarding programs --combining
vocational service and international understanding -- The Group Study
Exchange program.
Since that time, over 35,000 young business and professional men and women
have participated on 6,500 GSE teams. An important emphasis of the program
is the opportunity to visit farms, schools, industrial plants,
manufacturers, professional offices, and governmental establishments to
observe and learn from a wide variety of vocational experiences.
By the l980s, Rotarians once again directed their attention to business and
professional relations - urging Rotarians to maintain a balance between the
natural desire for success in one's vocation, and the necessity to maintain
ethical, honest and dignified business practices.
Finally, in l989, the Council on Legislation adopted a new statement, called
a "Declaration of Rotarians In Business and Professions." This eight
paragraph declaration provides a more specific explanation or guidelines for
what the phase "high ethical standards" actually means in the Object of
Rotary.
The Declaration for Rotarians in Business and Professions once again
reiterates that a Rotarian's vocation is considered "to be another
opportunity to serve society" and an obligation to improve the quality of
life of one's community. Again we see the special reference to the dignity
and respect to all useful vocations.
The Declaration continues to emphasize the importance of honesty, high
ethical standards and fairness to employees, associates, competitors,
customers and the public.
Today, if we wish to put Vocational Service in its proper perspective in the
lives of Rotarians, we could well look to a fundamental statement drafted by
RI President, Will Manier and adopted at the l934 RI Convention in St. Louis
which said: "Fundamentally, Rotary is a philosophy of life that undertakes
to reconcile the ever present conflict between the desire to profit for
one's self and the duty and consequent impulse to serve others. The
philosophy is the philosophy of service-- Service Above Self -- and is based
on the practical ethical principle that "He Profits Most Who Serves Best."
That is the basis of all Vocational Service activities of Rotary.
One of Rotary's greatest builders, Chesley Perry, the General Secretary of
Rotary for 32 years, summed up the early direction of Rotary in these terms:
"Although Rotary may have started as a simple and more or less selfish
endeavor to get additional business for those who were its first charter
members, it has grown and developed into a marvelous great universal
movement with elements of altruism, sparkling with beautiful gems of the
philosophy and science of service to fellow man and society."
As we begin this 21st Century, it seems as if our society has come full
circle in the question of business ethics. Large corporation executives are
under indictment for unethical and illegal practices. Huge segments of the
population have lost savings and retirement funds because of shady and
shameless corporate dealings. Confidence in business and professional trust
has been eroded and lost. Perhaps the time has come for Rotarians to recall
the Rotary Code of Business Ethics and tell the world again the important
messages of business honesty, ethics, truth and fairness.
If Vocational Service was the basis for Rotary's activities in the beginning
of our first century, this may be the time to restore business and
professional ethical concerns as Rotary's primary responsibility as we
approach our second century. So, let us celebrate this day as we
contemplate the role of Vocational Service in Rotary.
CLIFFORD L. DOCHTERMAN
President, Rotary International, 1992-93.
Member of the Rotary Club of Moraga,
California, U.S.A.
Contact
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