The Four-Way Test
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. |

