Birth of the Rotary "FOUR WAY TEST"

(excerpts from a speech by Darrell Thompson with appreciation to Myron Taylor)

There are several ways to describe what Rotary is all about. One is
the slogan that we use, "Service Above Self . . . He Profits Most Who
Serves Best". That is certainly a high and noble ideal that has lifted
many a man or woman out of themselves and set their vision on the heights.
Another ideal around the world is "The Four Way Test" and it is one of the
most famous statements of our Century.

Like most things worthwhile, it came into existence because of one man.
Great things are not normally accomplished by a committee. Most things
of value in this world have been done because of a special person.
Great things are done by human beings, who are committed to a cause.

I want to tell you about The Four Way Test and Herbert J. Taylor, a
man of action, faith, and high moral principle. Born in Michigan, he
married in 1919 and moved to Oklahoma where he worked for the Sinclair Oil
Company. After a year, he resigned and went into Insurance, Real Estate,
and Oil Lease Brokerage. He was a mover, a doer, a consummate salesman,
and a leader of men.

With some prosperous years behind him, Herb returned to Chicago in
1925 and began a swift rise within the old Jewel Tea Company. In line for
the presidency of Jewel in 1932, he was asked to help revive the
near-bankrupt Club Aluminum Company. The company owed $400,000 more
than its total assets and the operating capital was a $6,100 loan from some
reckless banker. He responded to the challenge and decided to cast his lot
with this troubled firm.

Looking for a way to resuscitate the company, caught in the great
depression, Herb prayed (he was a deeply religious man) for a short
measuring stick of ethics, the staff could use. At that time he put
together what ultimately became The Four Way Test. An associate and
member of the RC Westwood Village in Los Angeles, designed the first
plaques of the test to be put on the desks of businessmen.

Herb had a little black book where he jotted down things he wanted to
remember. As he thought about an ethical measuring stick for the company,
he first wrote a statement of about 100 words and decided that was too
long. He continued to work, reducing it to seven points. Yes . . .the Four
Way Test was once the Seven Way Test. It was still too long and he finally
reduced it to the four searching questions, which comprise the test today.
Once the final test was formed, he checked it with his four department
heads: a Roman Catholic, a Christian Scientist, an Orthodox Jew, and a
Presbyterian. He referred to the points as principles rather than
religious guidelines and they all agreed the test not only coincided with
their religious beliefs, but provided a superb guide for personal and
business life.

There was a man . . .Herbert J. Taylor, and now there was
The Four Way Test, of the things we think, say or 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?

Simply written, yet it is as profound as it is simple. The words
became the basis for decisions, large and small, at Club Aluminum.
But a Test must be put to the test. Would it work? Could business
people really live by it?

One lawyer said, "If I followed the Test explicitly, I would starve to death. Where business is concerned I think the Four Way Test is absolutely impractical." The problem is understandable, when we talk about living the truth and measuring actions on the basis of benefits to others. It stirs bitter conflict within some, in a place where integrity and ambition lie side by side in uneasy
suspension. Sizzling debates have been held in various parts of the world
on the practicality of it as a way of living.

Truth, Fairness and Consideration provide a moral diet so rich it
gives some people ethical indigestion. It calls for thoughtful examination
of motives and terrible probing of life's goals. There are always some
serious-minded Rotarians, not to mention skeptics and negative thinkers,
who view The Four Way Test as a simplistic philosophy of dubious worth,
contradictory meaning, and unrealistic aims. While one reacts in anger,
another finds it to be an answer.

At Club Aluminum, everything was measured by the Four Way Test.
First, they applied it to advertising. Words like Better, Best, Greatest
or Finest were dropped and replaced by factual descriptions of the product.
Adverse competitor comments were removed from advertising and literature.
Employees were asked to memorize the Test and use it in their relations
with others. It gradually became a guide for every aspect of the business, creating a climate of trust and goodwill among dealers, customers, and employees. It gradually and completely improved the Club Aluminum picture.

One day, the Sales Manager announced a possible order for 50,000
utensils. Sales were low and they were still in a bankrupt condition.
They certainly needed and wanted that sale, but there was a hitch. After
thinking about The Four Way Test, the Sales Manager said his potential
customer intended to sell the products at cut rate prices. "That wouldn't
be fair to our regular dealers who have been advertising and promoting our
product consistently," he said. The order was turned down and was probably
one of the most difficult decisions the Company made in those years. There
was no question this transaction would have made a mockery out of The Four
Way Test they professed to live by.

By 1937, the indebtedness was paid off and in the next 15 years, the
Company distributed more that a million dollars in dividends. Its net
worth climbed to over $1,750,000. The Four Way Test was born in the rough
and tumble world of business. It was put to the acid test of experience in
one of the toughest times that the business community has ever known.

The Four Way Test survived the in the arena of practical business life.
In 1942, Richard Vernor, then a Director of Rotary International,
suggested that Rotary adopt the Test and the board approved this in
January of 1943. It was worked into the Vocational Service program, though
today it is considered a vital element in all four Avenues of Service. It has
since been translated into all principal languages. Herb Taylor transferred
property rites in the Test to Rotary International when he served as Rotary's
International President in 1954-55, during Rotary's Golden Anniversary.

Has the Test lost its usefulness in modern society? Is it "sophisticated" enough to guide business and professional men and women in
these fast-paced times? PDG Elmer R. Jordan wrote: It is Vocational
Service where you and I earn our daily bread, and are judged as Rotarians.
The way in which we conduct our business and profession is what really
matters. How we reconcile our desire for profit with our willingness to
render honest service will exemplify the dignity of our occupation in doing
business in our community.

Now, after 55 years, when the population of our country has doubled
and great social, economic, and lifestyle changes have taken place, can
The 4-Way Test still work?"

Is it the TRUTH? There is a timelessness in truth which is unchangeable.
Truth cannot exist without justice.

Is it FAIR to all concerned? The substitution of fairness for the harsh
principles of doing business at arm's length has improved rather
than hurt business relationships.

Will it build GOODWILL and BETTER FRIENDSHIPS? Man is by nature
a cooperative animal and it is his natural instinct to express love.

Will it be BENEFICIAL to all concerned? This question eliminates the
dog-eat-dog and substitutes the idea of constructive and
creative competition.

The 4-Way Test is international. It transcends national boundaries
and language barriers. It knows no politics, dogma, or creed. It is not
merely a code of ethics, it has all the ingredients for a successful life
in every way. The 4-Way Test Can and Will Work in Today's Society.
The Four Way Test has been translated into the languages of more than
100 different countries.

Japan has led the world in practical uses of the Test. In 1954, the Osaka Rotary Club became the first to place it on the club banner. Some years ago, a Rotary Club in Japan initiated a project, which provided loan umbrellas for railroad passengers caught in unexpected showers. One member wondered whether the commuters would return the umbrellas. Another suggested printing The Four Way Test on the underside of the umbrellas. Months later the umbrellas had been used widely without the loss of a single one.

High Schools and Colleges in more than 25 countries display The Four
Way Test for the inspiration of their young people. To encourage
sportsmanship, Rotarians in Indiana installed a Test sign in a school gym.
It sits on the desk of more than a half million business and professional
men and women in the US alone.

Countless poems have celebrated the Test. A Texas attorney, Rotarian O. M. Stubblefield, put it to music with lyrics built around the four questions. In 1970, Rotarian Joseph Jennings of Maryland wrote his Master's Degree thesis at George Washington University on "The Four Way Test - A Viable Philosophy For Contemporary Managers".

Circuit Judge Arnold Cave of Wisconsin displayed the Test in his chambers. "Often, during some heated discussions between counsel at
pre-trial conferences in chambers, I have directed the attention of counsel
to the Test with good results," he said.

In 1955, a Chamber of Commerce called Herb Taylor and said, "We have a
situation here, . .a bad situation. There are about 400 motels that
constantly fight with each other and refuse to cooperate. Do you think we
could use The Four Way Test to work this out?" "Absolutely," answered
Herb, and he offered precise recommendations on how the community could
implement the program. The project got started with a local pharmacist,
spearheading the effort.

Ministers announced it from their pulpits, plaques were set up in
prominent places, and a full-page newspaper advertisement heralded the
start of the campaign. Billboards along the roads spotlighted the town's
espousal of The Four Way Test and soon the atmosphere of the community
began to change. Motel owners agreed to cooperate and form a central
clearing house. After a year of promotion and education, even traffic
accidents decreased over 5%, and injuries declined 20%.

During that year 355 young people were placed in juvenile homes.
After twelve months of trying The Four Way Test, there was a decrease of
over 50%, with only 184 being sent to detention homes. Fifteen years
later, "The Four Way Test had created an entirely new moral climate and was
still being practiced in the business community.
The Four Way Test has inspired safe driving programs, fire prevention
campaigns, crime reduction activities, has been written into labor
contracts, chiseled in granite, and has been the subject of countless
essays. Its message has been shouted by billboards, enshrined in bronze
plaques, painted on the back of moving vans, and promoted over radio and
television. But it was really intended to be taken to heart and to be
expressed in life, in action, in relationships, in business transactions.
Its purpose is to teach us how to think right in order that we can begin to
act right.

The final test is in the doing. William James, the noted psychologist,
once said, "The ultimate test of what a truth means is the conduct it
dictates or inspires." I like Herbert J. Taylor's definition of Rotary:
"Rotary is a maker of friendships, a builder of men and women and
communities, and a creator of goodwill and friendships between the peoples
of the world." At the heart of Rotary today is The Four Way Test - a call
to moral excellence. Human beings can grow together. Modern business can
be honest and trustworthy. People can be led to believe in one another.
And in all of these areas the philosophy of The Four Way Test can help.
Years ago, John W. Gardner, a former US Secretary of Health, Education
and Welfare said, "The society which scorns excellence in plumbing, because
plumbing is a humble activity, and tolerates shabbiness in philosophy
because it is an exalted activity, will have neither good plumbing nor good
philosophy. Neither its pipes nor its theories will hold water."

Few things are needed more in our society than moral integrity. The
Four Way Test will guide those who dare to use it for worthy objectives:
choosing, winning, and keeping friends; getting along well with others;
insuring a happy home life; developing high ethical and moral standards;
becoming successful in a chosen business or profession; becoming a better
citizen; and becoming a better example for the young people of the coming
generation.

At a Rotary Convention in San Francisco, James S. Fish said, "To
endure, the competitive enterprise system must be practiced within the
framework of a strict moral code. Indeed, the whole fabric of the
capitalistic system rests to a large degree on trust . . .on the confidence
that businessmen and women will deal fairly and honestly, not only with
each other, but also with the general public, with the consumer, the
stockholder, and the employee."

"The ethical standards of his or her company are the responsibility of
the top man and he must insist that those standards not be diluted as they
are relayed, layer by layer, down through the corporate structure."
Eloquently simple, stunning in its power, undeniable in its results,
The Four Way Test of the things we think, say or do, offers a fresh and
positive vision in the midst of a world full of tension, confusion, and
uncertainty.

Is it the TRUTH?
Is it FAIR to all concerned?
Will it build GOODWILL and BETTER FRIENDSHIPS?
Will it be BENEFICIAL to all concerned?

Well, there it is fellow Rotarians - our Four Way Test.
And here we are, at the threshold of it taking us into a new century.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(Edited for the ROTI Institute by Douglas W. Vincent, International Chairman
RC Woodstock-Oxford, D7080 Ontario Canada. vincent@teamvincent.com
For more information contact:
-----------------------------------------
The 4-Way Test Assoc Inc
4211 Carmichael Rd, Montgomery, AL 36106
Phone: (334) 277-6390

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