How It Works

For many decades Rotary Clubs and Rotarians around the world have used “The 4-Way Test” as an instrument to develop respect and understanding among peoples.

How the test works is indicated in the following story. It is by the Chicago Rotarian who developed it, and he suggests that you first memorize “The 4-Way Test” and then form the habit of checking your thoughts, words, and deeds with it.

“The 4-Way Test” has been used successfully around the world in business, government, and schools as an effective measuring stick for conduct, and a guide to right thinking. If memorized and constantly applied to relations with others, it will contribute to more effective and friendlier relationships.

If you get into the habit of checking your thoughts, words and deeds against “The 4-Way Test,” experience has shown that it will help you become happier and more successful. Here is the story of how “The 4-Way Test” came to be developed.

Story of “The 4-Way Test,” by Herbert J. Taylor
, President, Rotary International 1954-55

Back in 1932 I was assigned, by the creditors of the Club Aluminum Company, the task of saving the company from being closed out as a bankrupt organization. The company was a distributor of cookware and other household items. We found that the company owed its creditors over $400,000 more than its total assets. It was bankrupt but still alive. At that time we borrowed $6,100 from a Chicago bank to give us a little cash on which to operate.

While we had a good product, our competitors also had fine cookware with well-advertised brand names. Our company also had some fine people working for it, but our competitors also had the same. Our competitors were naturally in much stronger financial condition than we were.

With tremendous obstacles and handicaps facing us, we felt that we must develop in our organization something our competitors would not have in equal amount. We decided that is should be character, dependability and the service-mindedness of our personnel. We determined, first, to be very careful in the selection of our personnel and, second, to help them become better men and women as they progressed with our company.

We believed that “In right there is might” and we determined to do our best to always be right. Our industry, as was true of scores of other industries, had a code of ethics — but the code was too long, almost impossible to memorize, and therefore impractical. We felt that we needed a simple measuring stick of ethics, one everyone in the company could quickly memorize. We also believed that the proposed test should not tell our people what they must do, but ask them questions which would make it possible for them to find out whether their proposed plans, policies, statement or actions were right or wrong.

We had looked in available literature for such a short measuring stick of ethics, but could not find a satisfactory one. One day in July 1932, I decided to pray about the matter. That morning I leaned over my desk and asked God to give us a simple guide to help us think, speak, and do that which is right. I immediately picked up a white card and wrote out “The 4-Way Test” of the things we think, say or do as follows:

Is it the truth? 

Is it fair to all concerned? 

Will it build goodwill and better friendships? 

Will it be beneficial to all concerned?

I placed this little test under the glass top of my desk and determined to try it out for a few days before talking to anyone else in the company about it. I had a very discouraging experience. I almost threw it into the wastepaper basket the first day when I checked everything that passed over my desk with the first question, Is it the truth?” I never realized before how far I often was from the truth and how many untruths appeared in our company’s literature, letters, and advertising.

After about 60 days of faithful constant effort on my part to live up to “The 4-Way Test,” I was thoroughly sold on its great worth and at the same time greatly humiliated, and at the same time discouraged with my own performance as president of the company. I had, however, made sufficient progress in living up to “The 4-Way Test” to feel qualified to talk to some of my associates about it. I discussed it with my four department heads. You may be interested in knowing the religious faith of these four men. One was a Roman Catholic, the second a Christian Scientist, the third an Orthodox Jew, and the fourth a Presbyterian.

I asked each man whether or not there was anything in “The 4-Way Test” which was contrary to the doctrines and ideals of his particular faith. They all four 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. These four men agreed to use “The 4-Way Test” in checking proposed plans, policies, statements, and advertising of the company. Later, all employees were asked to memorize and use “The 4-Way Test” in their relations with others.

The checking of the advertising copy against “The 4-Way Test” resulted in the elimination of statements the truth of which could not be proved. All superlatives such as the words better, best, greatest, and finest disappeared from our advertisements. As a result, the public gradually placed more confidence in what we stated in our advertisements, and bought more of our products.

The constant use of “The 4-Way Test” caused us to change our policies covering relations with competitors. We eliminated all adverse or detrimental comments about our competitors’ products from our advertisements and literature. When we found an opportunity to speak well of our competitors, we did so. Thus, we gained the confidence and friendship of our competitors.

The application of “The 4-Way Test” to our relations with our own personnel and that of our suppliers and customers helped us to win their friendship and goodwill. We have learned that the friendship and confidence of those with whom we associate is essential to permanent success in business.

Through over 20 years of sincere effort on the part of our personnel, we have been making steady progress toward reaching the ideals expressed in “The 4-Way Test.” We have been rewarded with a steady increase in sales, profits, and earnings of our personnel. From a bankrupt condition in 1932 our company within a period of 20 years had paid its debts in full, had paid its stockholders over one million dollars in dividends and had a value of over two million dollars. All of these rewards have come from a cash investment of $6,100, “The 4-Way Test,” and some good hard-working people who have faith in God and high ideals.

Intangible dividends from the use of “The 4-Way Test” have been even greater than the financial ones. We have enjoyed a constant increase in the goodwill, friendship, and confidence of our customers, our competitors, and the public — and what is even more valuable, a great improvement in the moral character of our own personnel.

We have found that you cannot constantly apply “The 4-Way Test” to all your relations with others eight hours each day in business without getting into the habit of doing it in your home, social, and community life. Thus, you become a better father, a better friend, and a better citizen.