The Four-Way Test

1. Is it the truth?
   
2. Is it fair to all concerned?
   
3. Will it build goodwill and better friendships?
   
4. Will it be beneficial to all concerned?
   

   Copyrighted: reprinted by special permission
   

In 1932, Herbert J. Taylor, who was later a President of Rotary International (1954-55), was given the task of saving his company from bankruptcy. The Club Aluminum Company, distributors of cookware and other household utensils, owed over $400,000 more than its total assets. It was bankrupt but still alive.

A survey disclosed that while the company had a good product, and fine people working for it, its competitors also had the same, and were stronger financially. Borrowing $6,100 for operating cash, a plan was formulated and a simple code adopted as a measuring stick of ethics which everyone in the company could memorize. After long testing, and at times discouragement, Herb Taylor decided to talk to his associates about it. Incidentally, his four department heads were a Roman Catholic, a Christian Scientist, an Orthodox Jew and a Presbyterian. Each man 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.

In addition to the intangible dividends the company reaped through a constant increase in goodwill, friendship and confidence of its customers, its competitors, and the public, the application of the Four-Way Test was rewarded with a steady increase in sales, profits, and earnings of company personnel. By 1954, when Mr. Taylor became President of Rotary International, the company's debts were paid, its stockholders received over $1 million in dividends, and the value of the firm was over $2 million. All this from a cash investment of $6,100, the Four-Way Test, and some good hard-working people who had faith in God and high ideals.