1. Of The Things We Think Say Or Do
The Four Way Test
Of The Things We Think Say Or Do

2. The Four Way Test Developed by Herbert J. Taylor in 1932
Taylor became CEO of Club Aluminum – a manufacturer of cookware
Company was $400, in debt and at current sales level would never be able to service this debt
In an effort to turn things around – Taylor focused on the ethical climate

3. The Four Way Test
Ethics are the behaviors that are governed by high moral thoughts or beliefs
Morals are the rules that govern which actions are right and which are wrong. Morals can be for all of society or an individual. Morals can be gleaned from a story or experience, or from higher beings such as God, Allah, Buddha, or Confucius

4. The Four Way Test Taylor looked to his higher authority – God
“The first job was to set policies that would reflect the high ethics and morals God would want in any business. If the people who worked for Club Aluminum were to think right, I knew they would do right. What we needed was a simple, easily remembered guide to right conduct – a sort of ethical yardstick – which all of us in the company could memorize and apply to what we thought, said and did.”

5. The Four Way Test
“I searched through many books for the answer to our need, but the right phrases eluded me.”
“So one morning, I leaned over my desk, rested my head in my hands. In a few moments, I reached for a white paper card and wrote down that which had come to me – in twenty-four words.”

6. The Four Way Test
Taylor tested the Four Way Test by asking the opinion of others with different religious beliefs
Taylor applied the Four Way Test to every decision made at Club Aluminum
Advertising Sales Printing
When a company advertisement was placed before Herb, declaring his aluminium product as “the greatest cooking ware in the world”, Herb simply stated “We can’t prove that”. The advert was rewritten simply stating the facts.
The most significant and practical example of the test in action concerned an incident involving a Printing contract. One local printer won an order from Herb’s company beating all other tenders. The printer, however, soon realised that he had under-estimated his quote by $500. Legally, Club Aluminium could ignore the printer’s appeals and compel him to fulfil his side of the contract. Club Aluminium was deeply in debt and had acted in good faith but Herb asked his board to reconsider and pay the printer the extra $500. Remember the second line of the test, he told his fellow directors, - “is it fair to all concerned?”

7. The Four Way Test
Did it Work?

8. The Four Way Test
YES !!!

9. The Four Way Test Eliminated $400,000.00 debt within 5 years
Returned to profitability
Paid over $1,000,000 in dividends over the next 15 years (1937 – 1952)
Net worth of company increased to over $1.75 million
What cost $ in 1952 would cost $ in 2014.

10. The Four Way Test Taylor joined Rotary in the 1920’s
1938 – became president of the Rotary Club of Chicago – introduced The Four Way Test
1952 – gave permission to promote The Four Way Test worldwide
became President of Rotary International and gave the copyright of The Four Way Test to RI
Herb married Gloria Forbich in 1919 and moved to Oklahoma. It was there that he helped found the Rotary Club of Wynnewood. He moved to Chicago in the late '20s and joined Club #1 to which he served by holding almost every office of the Club including the Presidency.

11. The Four Way Test Taylor joined Rotary in the 1920’s
1938 – became president of the Rotary Club of Chicago – introduced The Four Way Test
1952 – gave permission to promote The Four Way Test worldwide
became President of Rotary International and gave the copyright of The Four Way Test to RI
Herb married Gloria Forbich in 1919 and moved to Oklahoma. It was there that he helped found the Rotary Club of Wynnewood. He moved to Chicago in the late '20s and joined Club #1 to which he served by holding almost every office of the Club including the Presidency.

12. 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?
Hallie Story

13. The Four Way Test ESSAY CONTEST
Open to 7th or 8th Graders
300 Words or Less
To club by 12/5; to District by 12/19
“Can students live by the 4-Way Test? Would the world be a better place if everybody followed the 4-Way Test?”

14. Contact Information
Martin Tetreault
District 7710 Four-Way Test Committee Chairman  
Phone:
Fax:
Address: P.O. Box 1028, Smithfield, NC 27577