The 4 Way Test
Posted by Bill Molesworth
Fred Hacker said that the Test is more than just an exercise in memory work. Bill Boyd has written that John Dean once said that Watergate would not have happened if those involved had used its guidance even occasionally. It works for any issue.
In 1932 Herbert J. Taylor developed the Test and it's till relevant. There is no religious or cultural connection - it's a simple checklist. The question is - it's on our walls, is it in our minds? Its about truth, fairness and doing our best.
In part it was developed as a reaction to the Chicago of the times and in part a yearning for that which was left behind in the small towns of the founders' youth.
Taylor was a leader and a salesman of faith and moral principals. He worked with the Y and in supply with the Navy during WW I, and in insurance, oil leases and real estate. He was in line to for a promotion at a successful company but he left it to take over, at an 80% pay cut, Club Aluminum which was $400,000.00 in debt. He invested his own money and prayed for inspiration.
In seeking a moral guideline for his company he drafted a 7 part test that was 100 words long, but he edited it. Ministers of different faiths approved the text.
In 1932 Herbert J. Taylor developed the Test and it's till relevant. There is no religious or cultural connection - it's a simple checklist. The question is - it's on our walls, is it in our minds? Its about truth, fairness and doing our best.
In part it was developed as a reaction to the Chicago of the times and in part a yearning for that which was left behind in the small towns of the founders' youth.
Taylor was a leader and a salesman of faith and moral principals. He worked with the Y and in supply with the Navy during WW I, and in insurance, oil leases and real estate. He was in line to for a promotion at a successful company but he left it to take over, at an 80% pay cut, Club Aluminum which was $400,000.00 in debt. He invested his own money and prayed for inspiration.
In seeking a moral guideline for his company he drafted a 7 part test that was 100 words long, but he edited it. Ministers of different faiths approved the text.
Can a business man be honest and survive? A lawyer reportedly told Taylor that if he followed these guides he would starve. They are demanding, they stir up conflict and their practicality is still debated today.
But Taylor applied it to all his advertising - avoiding superlatives and negatives alike and sticking to the facts. He slowly built up a climate of trust and good will with his customers. Once the company was offered a huge order but he learned they were intended for resale at a cut rate which he felt would not be fair to his other customers and, though he needed the business, he turned it down.
By 1937 the company had paid off its debt, issued a million in dividends and had a net worth of 2 million.
Is the test too idealistic? It was born in an even more rough and tumble world of business and the headlines show us that there's still a need. It simply asks us to do what's right, not just what's legal.
Taylor went on to become President of RI in 54-55 and in 59 founded a non-profit company that assists businesses in implementing the Test.
Being ethical means you take the interests of others as seriously as you do your own. How often do we do this? But without ethics there is no trust from your clients, no reputation for your company.
The scandals we read about now are driven by the incessant demand for immediate results. That short term gain may well result in long term loss through a negative reputation. Rotarians are the decision makers, they are responsible for making the 'right' decision which contributes to a civilized society.
The challenge is that sometimes the 4 conflict - it may be the truth, but it may not be beneficial - it may be beneficial but it may not be fair. However, we can't content ourselves by just being conformist - we are surrounded by compromise and we have to challenge that attitude and stand for right. We must diligently adhere to these principles so we can be called Rotarians.
Cheryl thanked Fred for the time spent, we have learned something and we need to take a step back and appreciate it. She said the Club is fortunate to have Fred in Rotary and as a Friend. Joyce added her thanks and said Fred had done a terrific job during Rotary Awareness Month.
But Taylor applied it to all his advertising - avoiding superlatives and negatives alike and sticking to the facts. He slowly built up a climate of trust and good will with his customers. Once the company was offered a huge order but he learned they were intended for resale at a cut rate which he felt would not be fair to his other customers and, though he needed the business, he turned it down.
By 1937 the company had paid off its debt, issued a million in dividends and had a net worth of 2 million.
Is the test too idealistic? It was born in an even more rough and tumble world of business and the headlines show us that there's still a need. It simply asks us to do what's right, not just what's legal.
Taylor went on to become President of RI in 54-55 and in 59 founded a non-profit company that assists businesses in implementing the Test.
Being ethical means you take the interests of others as seriously as you do your own. How often do we do this? But without ethics there is no trust from your clients, no reputation for your company.
The scandals we read about now are driven by the incessant demand for immediate results. That short term gain may well result in long term loss through a negative reputation. Rotarians are the decision makers, they are responsible for making the 'right' decision which contributes to a civilized society.
The challenge is that sometimes the 4 conflict - it may be the truth, but it may not be beneficial - it may be beneficial but it may not be fair. However, we can't content ourselves by just being conformist - we are surrounded by compromise and we have to challenge that attitude and stand for right. We must diligently adhere to these principles so we can be called Rotarians.
Cheryl thanked Fred for the time spent, we have learned something and we need to take a step back and appreciate it. She said the Club is fortunate to have Fred in Rotary and as a Friend. Joyce added her thanks and said Fred had done a terrific job during Rotary Awareness Month.