The Four Way Test
Of The Things We Think Say
Or Do
The Four Way Test
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Developed by Herbert J. Taylor in 1932
Taylor became CEO of Club Aluminum – a
manufacturer of cookware
Company was $400,000.00 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
The Four Way Test
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Ethics are the behaviors that are governed by
high moral thoughts or beliefs
High moral thoughts are developed by a belief
in a higher authority
Higher beings such as God, Allah, Buddha,
Confucius
The Four Way Test
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Herbert J. 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.”
The Four Way Test
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“I searched through many books for the answer
to our need, but the right phrases eluded me, so
I did what I often do when I have a problem I
can’t answer myself: I turn to the One who has
all the answers. I leaned over my desk, rested my
head in my hands and prayed. After a few
moments, I looked up and reached for a white
paper card. Then I wrote the twenty-four words
that had come to me.”
The Four Way Test
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Taylor tested the Four Way Test by asking the
opinion of other religious beliefs
Taylor applied the Four Way Test to every
decision made at Club Aluminum
Advertising
Sales
Printing
The Four Way Test
Did it Work?
The Four Way Test
YES !!!
The Four Way Test
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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
The Four Way Test
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Taylor had become involved with 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
1954-1955 became president of Rotary
International and gave the copyright of The
Four Way Test to RI
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?