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FOUR-WAY TEST AND VOCATIONAL SERVICE

Back in 1932 Herbert J. Taylor was assigned by the creditors of the
Club Aluminum Company the task of saving the company from being
closed out as a bankrupt organization.
owed its creditors over

$k00}000

He found that the company

more than its total assets.

It

was bankrupt but still alive.

At that time he borrowed $6,100 from a Chicago bank to have a little
cash on which to operate.

While he had a good

product, his competitors also had a fine cook

ware with well advertised brand names.

His company also had some

fine people working for it, but his competitors also had the same.
His competitors were naturally in much stronger financial position
than he was.

With these tremendous obstacles and handicaps facing him and his
company he felt that he must develop in his organization something
which his competitors would not have in equal amount.

He decided

that it should be in the character, dependability, and servicemindedness of his personnel.

He determined to be very careful In

the selection of his personnel and to help them become better men
and women as they progress with the company.

He believed that nIn right there is might.” And he determined to do
his best to always be right.

His industry, as was true of scores

of other industries, had a code of ethics but the code was long,
almost impossible to memorize and, therefore, impractical.

He

felt that he needed a simple code of ethics which everyone in the
company could quickly memorize. He also believed that theproposed
code should not tell his people what they must do but ask them



2

questions which would make it possible for them to find out whether
their proposed plans, policies, statements or action were right or
wrong.
Herbert Taylor decided that the logical place to look for guidance
and inspiration in formulating his code wasthe Bible.

Through the

years this book had been the source of many of the world's great
moral and spiritual truths.

In a certain passage of the scripture he found the four basic words
around which the four-way test was built.

These four words are

truth, justice, friendliness, and helpfulness.

Considerable

time was spent in developing these four words into four short
questions, which now make up the four-way test.

Here are the

four questions;
1. Is it the truth?
2. Is it fair to all concerned?
3. Will it build good will and better friendships?

k.

Will it be beneficial to all concerned?

Just 25 words - But when it was finished Herbert Taylor found
that it could be applied effectively to all human relations in business, in the home, in the school, or in legislative
chambers.

As you know, it is now generally recognized as the

shortest effective code of ethics so far devised.

Herbert Taylor placed this little code under the glass top of
his desk and determined to try it out for a few days before
talking to anyone in the company about it.
discouraging experience.

He had a very

He almost threw it in the waste basket

the first day when he checked everything that passed over his
desk with the first question - "Is it the truth?”




He little

3

realized before how far he often was from the truth and how many ‘ ntruths
u
appeared in his company’s literature, letters, and advertising.

After about 60 days of faithful constant effort on his part to live up
to the Four-Way Test he was thoroughly sold on its great worth and at
the same time greatly humiliated and at times discouraged with his
own performance at*President of the company.

Herbert Taylor had,

however, made sufficient progress in living up to the Four-Way test
to feel qualified to talk to some of his associates about it.
discussed it with his four department heads.

He

You may be interested

in k n o w i n g the religious faith of these four heads.

One was

Roman Catholic, the second was Christian Scientist, the third was
Orthodox Jew and the fourth a Presbyterian.

He asked each man itfhether or, not there xfas anything in the Four-Way
Test which was contrary to the doctrines and ideals of his
particular faith.

They all four agreed that truth, justice,

friendliness, and helpfulness, not only coincided with their
religious ideals but that if constantly applied in business they
should result in greater success and progress.

These four men

agreed to use the Four-Way Test in checking proposed plans,
policies, statements, and advertising of the company.

Later

all employees were asked to memorize and use the Four-Way Test
in their relations with others.

The checking of advertising copy against the Four-Way Test resulted
in the elimination of statement s the truth of which could not be
proven.

All superlatives such as the

word better, best, greatest

hissx and finest disappeared from their advertisements. As a
result the public gradually placed more confidence in what they
 said in their advertisements and bought more of their product.


k

The constant use of the Four-Way Test caused this company to
change its policies covering relations with competitors. They
eliminated all adverse and detrimental comments on their
competitors’ products from their advertisements and literature.
When they found an opportunity to speak well of their competitors
they did so.

Thus - they gained the confidence and friendship of

their competitors.

The application of the Four-Way Test to their relations with
their own personnel, with that of their suppliers and customers
help them to win their friendship and confidence, also.

This

experience taught them the truths contained in the quotation, fA
I
good name is rather to be chosen than great riches, and loving
favor rather than silver and gold."

A short time ago Herbert Taylor reported, "Through over 19 years
of sincere effort on the part of our personnel, we have been making
steady progress towards reaching the ideals expressed in the Four-Way
Test. We have been rewarded with a steady increase in sales, profits,
and the earnings of our personnel.

1932

From a bankrupt condition in

our company has paid its debts in full, has paid to its

stockholders over one million dollars in dividends, and has a
present value of over two million dollars.1
1

AH

of these rewards have come from a cash investment of only

|6,100,

the ^our-Way test, and some good hardworking people who

have put faith in God and high ideals.

As the Book of Books says,

"I will put my laws into their minds and write them in their hearts."




5

Most of oar people have the laws of God in their minds and hearts
and they have a real desire to live up to the Four-Way Test in
all of their relations with others.

Intangible dividends from the use of the Four-Way Test have been
even greater than the financial ones.
the Club Aluminum Company.

This was certainly true for

They have enjoyed a constant increase

in the good will, friendship, and confidence of their customers,
their conpetitors, and the public, and what is even more valuable an improvement in the moral character of their own personnel.

We particularly like another comment byHerbert Taylor, "We have
found that you cannot constantly apply the Four-Way Test.to all
your relations with others eight hours each day in business without
getting into the habit of doing it in your home, social, and
community life.

You thus become a better father, a better friend,

and a better citizen."
/
I have a good friend down in

Georgia who runs a little grocery

store. He went to lunch with a friend one day who was trying to sell
him some advertising. He said, "Look, I ’ve been in business in this
little town 18 years.
me.

We don’t have too many people. Everyone knows

They know what I sell.

I ’m not going to keep on spending money

to tell people things they already know."

The advertising man said, "Look out the window."

My friend looked out the window.

There was the First Methodist Church

across the street. The advertising man .'told him the old story. "Now,
look here.

The church has been here 118 years but they still ring,

the bell eveiy Sunday morning. My advice to you is - If you want to



6

be around here a while, keep on ringing the bell."

As Rotarians, in just this same way, you and I may have never possessed
all of ourselves. Me have only possessed a part of what we are capable
of being. The key of Rotary can unlock some doors for us and let us
come into possession of our hitherto unpossessed selves.

Too far have we depended upon law to establish and enforce our
policies of honesty.

Too prone are we to think that the limits

of the laws are the limits of our honesty and that our policy
should only keep us within the law.

There is a wide area of

business ethics for honesty beyond the limits of the law, but
not beyond the Rotary ideal of service or the application of the
Four-Way Test.

Maybe you have heard me tell this story of Jonathan who had a policy.
Generally the sun shone for Jonathan, but rain or shine, his store
always echoed to his gaily whistled tune.

A customer came in and bought her customary half-dozen egg^s. "11*3
funny, Jonathan," she said, "But I never have to say ’
Are they fresh
h ere’".

Jonathan made no reply.

He put the eggs on the counter.

She says, "And I ’ll take 20 pounds of sugar."

Jonathan hesitated. He knew the customer’s husband had been ill
a long time. "If I i r
- ere you, I ’d wait.
down."

I ’m sure sugar is coming

"Then, I ’ll wait," decided the customer.

On the Main Street of a large city the Enterprise Store occupies a
full block surrounded by glowing plate glass windows. Crowds pour
in and the clerks and floorwalkers hurry.



7

’Look at this/' said a woman as she held up before a floorwalker
’
a ruffled hoy's sweater. "1 bought it last week,, and washed it
once."

The irritated customer was taken to the office of the storeowner.
“I'll see that you get your money back/' he said pleasantly and
gave her a note to the cashier.

’Sorry,, we'll try not to let it
’

happen again.1
1

Then he called the buyer.

"It isn't first quality," the buyer

admited, "but I bought those sweaters at a price that gives the
store a handsome profit."

"We are not in business primarily for handsome profit," the owner
firmly pointed out.

"This is an institution for service, and the

thousands who depend on us must not be betrayed. You were not
Ozarfc
fortunate enough to have been raised in

!
!

<cypf,Mb
"ffifedia!

Why, I passed through that place just a few weeks ago.

It's so small you can hardly see it."
"It's so big, there is no room for anything that smacks of
dishonesty.

The policy I made there has made the Enterprise Store

what it is, and I learned it from a man named Jonathan who runs
the one and only store there."
"I remember him," the buyer said.

"I stopped at his store.

He

wouldn't sell me a soft drink because he said it wasn’t fresh.
What do you knoitf about that - leaning backwards."

Alone in his office, the owner sat thinking. A little black
with gold lettering caught his eye. He picked up his pen.




o

0 * 4 tk f

A couple of days later, in Spsaia&ay Jonathan closed the door of his
store after a busy day.

He hurried home full of eagerness. He

held in his hand a letter from an old friend, a fellow townsman who
had made a brillant success in the city as the owner of the
Enterprise Store, and in the inspiration and comfort of his own
easy chair, he read:
it

Greetings, to the most successful man in the world. A full life
of service and honesty to whose example I owe my all*”
Jonathan bowed his head and in the faint flicker of the hearth
seemed to see the threads of gold like spider webs reaching out
to the uttermost realms.
That is the way of honesty in action. Yes, honesty is still the best
policy.

Another application of the Four-Way Test.

There are numerous ways in which the club can utilize the Four-Way
Test.

For instance, a project of the Columbus, Georgia Club

calls for each member to display a copy of the Four-Way Test
in a conspicuous place in his place of business.

Four-Way Test desk places have been presented to themembers of
their respective state legislatures by the Rotary Clubs of
Tallahassee, Florida; Madison, Wisconsin; and by all the Rotary
Clubs in North Carolina.

The Rotary Club of Jacksonville Beach started the project with
a series of teaser newspaper advertisements which said merely,
’The Four-Way Test."
’

When the public curiosity was fully aroused

editorials told what the test is and how it came to be. The Rotary
Club then held a large special meeting where the test was discussed
before civic leaders, other service clubs, clergymen, and non-Rotarien



9

businessmen.

The Rotary Club of Marion,, Ohio provides those members who are
manufacturers with export shipments a supply of cards to insert
in each package sent abroad.

The text on the card indicates the

manufacturer of the merchandise is represented in the Marion Rotary
Club.

It says that its business is conducted under the terms of

Rotary1s Four-Way Test.

Copies of the Four-Way Test are available in several styles, each
of which is widely useful for gift purposes, for club members on
special occasions,birthdays, anniversaries, for new members, or
guest speakers, for business associates, for customers, for
competitors, for schools.

It has been said that, if you make a better mousetrap, people will
beat a path to your door. The mere making of a better mousetrap
is fine, but the world must know that it will satisfy a need and
that these mousetraps may be had at your door.

necessary

It may even be

to post signs directing people to your door.

Rotary does not make mousetraps or pots or pans or food or clothing
or anything that can be seen or heard or tasted or smelled.
fact, Rotary does not make anything.

In

It merely encourages and

fosters an intangible, indefinable something that Rotarians have
developed over the years Four-Way Test.

an ideal of service embodied in the

People have beaten a path to the door of Rotary,

but until the ideal of service has become the basis of every
worthwhile enterprise, the untimate object of Rotary will not
have been attained.



Business and professional men,over a third of a million of them, have
found something better in Rotary.

It is our business to guard this

movement, constantly improve and make it better, to encourage, promote,
extend, and supervise it throughout the world, so that all men may
beat a path to the door of Rotary, embrace its philosophy, and
apply its ideals to their personal business and community enterprises.
Nothing offers a more attractive manner of presenting this than the
use by each Rotarian of the Four-Way Test in his own business or
profession.

Paul Harris, the founder of Rotary once said, "Rotary is made up
of unselfish men."

In rny opinion he could have truthfully added

that most Rotarians are continuously seeking ways and means of
exemplifing that unselfishness.

The underlying principle of

this ideal of service is very simple. It is nothing more
mysterious or complex than the golden rule applied with very
liberal proportions of plain old fashioned honesty and a high
sense of honor.
A Rotarian has little opportunity to devote every hour of every
business day of every working week to club service, community service,
or international service. He does,however, enjoy the opportunity
and carry the responsibility of practicing vocational service,
the application of the Four-Way Test during every hour that he is
engaged inthe conduct of his business or the practice of his
profession.

His every contact involves a decision or an act that

is either ethically X-right or ethically wrong, and it must be
ethically right if it is to line up squarely with Rotary standards.

Admittedly, we are all in business



for profit, but there

11

are people who sometimes blink at the mention of the word "profit”
and there are some who are inclined to apologize for it.

The

difficulty lies in our interpretation of what profit is., but I
believe the true answer can be obtained from what the Master once
said,, "What shall it profit a man if he gains the whole world and
loses his own soul.”

Generally speaking, Rotary is made up of keen-minded business and
professional men.

We aren’t the kind that needs to be preached

to, but we must not get the idea that the Four-Way Test is a mere
high-sounding phrase,some tangent Rotary is following, some
intangible philosophy surrounded by mystery, or a motto to be
hung on the wall and forgotten.

It is not comparable to the act

of hanging up the sign "God. Bless America” and then letting God
do all the work.

It is something we must apply and express every

day of our business life and not as an activity that we subscribe
to on meeting days only.

Every member of Rotary throughout the world is a custodian of the
influence of Rotary as he reflects the ideals and standards
implied in the Four-Way Test.To that extent he accounts for his
stewardship in Rotary.

It is a doctrine of fair and honorable

dealings.

Let us regard our business, our job, as something of mane
significance than a mere means of making a living. May we see
ourselves as Master Craftsmen, each with a loyalty to his craft
and a determination to see to it that our vocation or profession
contributes to the general welfare of our own community.




12

It is good to have money and the things that money can buy., but it
is good; too,, to check up once in a while to make sure we haven!t
lost the things that money can’t buy.

A man can be truthfuland

honorable,, but at the same time a most unpleasant and antisocial
fellow.

Application of the Four-Way Test should also include

considerate thoughtfulness.

It likely will inject a generous

measure of the golden rule.

This little poem by a Rotarian, Eddie Guest, seemed to include
in a capsule something of our thinking.

All of you have no doubt

heard it, but with each repetition it seems to bring a renewed
appreciation:
!I have to live with myself and so
i
I want to be fit for myself to know
I want to be able as the days go by
Always to look myself straight in the eye
I don’t want to stand with the setting sun
And hate myself for things I have done.
I don’t want to keep on a closet shelf
A lot of secrets about myself
And fool myself as I come and go
Into thinking that nobody else' will know
The kind of man I really am.
I don’t want to dress up myself in sham.!
1
0*<

j

”1 want to go with i y head erect
r
/ I want to deserve all men's respect
And here in the struggle for fame and wealth
I want to be able to like uyself
I don't want to look at myself and know
I am bluster and bluff and empty show
I can never hide nyself from me
I see what others may never see
I know what others may never know
I never can fool myself and so
■Whatever happens I want to be
Self respecting and conscions*free•w