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.
- 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 sceptics 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 labour contracts, chiselled 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 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?
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