More than 60 years ago, in the midst of the Great Depression, a U.S Rotarian devised a simple, four part ethical guideline that helped him rescue a beleaguered business. The statement and the principles it embodied also helped many others find their own ethical compass. Soon embraced and popularized by Rotary International, the 4-Way Test today stands as one of the organizations hallmarks. It may very well be one of the most famous statements of our century.

Herbert J. Taylor, author of the Test, was a mover, a doer, a consummate salesman and a leader of men. He was a man of action, faith and high moral principle. Born in Michigan, U.S.A., in 1893, he worked his way through Northwestern University in Evanston, Illinois. After graduation, Herb went to France on a mission for the YMCA and the British Army welfare service and served in the U.S. Navy Supply Corps in World War I. In 1919, he married Gloria Forbrich, and the couple set up housekeeping in Oklahoma, U.S.A., where he worked for the Sinclair oil Company. After a year, he resigned and went into insurance, real estate and oil lease brokerage.

As Rotary grew, its mission expanded beyond serving the professional and social interests of club members. Rotarians began pooling their resources and contributing their talents to help serve communities in need. The organization's dedication to this ideal is best expressed in its principal motto: Service Above Self. Rotary also later embraced a code of ethics, called The 4-Way Test, that has been translated into hundreds of languages.

With some prosperous years behind him, Herb returned to Chicago, Illinois, in 1925 and began a swift rise within the Jewel Tea Company. He soon joined the Rotary Club of Chicago. In line of the presidency of Jewel in 1932, Herb was asked to help revive the near bankrupt Club Aluminum Company in Chicago. The cookware manufacturing company owed $400,000 more than its total assets and was barely staying afloat. Herb responded to the challenge and decided to cast his lot with this troubled firm. He resigned from Jewel Tea taking an 80 percent pay cut to become president of Club Aluminum. He even invested $6,100 of his own money in the company to give it some operating capital. Looking for a way to resuscitate the company and caught in the Depression’s doldrums, Herb, deeply religious, prayed for inspiration to craft a short measuring stick of ethics for the staff to use.

As he thought about an ethical guideline for the company, he first wrote a statement about 100 words but decided that it was too long. He continued to work, reducing it to seven points. In fact, The 4-Way Test was once a Seven-Way Test. It was still too long, and he finally reduced it to the four searching questions that comprise the Test today.

Next, he checked the statement with his four department heads: a Roman Catholic, a Christian Scientist, an Orthodox Jew and a Presbyterian. They all agreed that the principles not only coincided with their religious beliefs, but also provided an exemplary guide for personal and business life.

And so, “The 4-Way Test of the things we think, say or do” was born:
Is it the TRUTH?
Is it FAIR to all Concerned?
Will it build GOODWILL and BETTER FRIENDSHIPS?
Will it be BENEFICIAL to all concerned?

Profound in its simplicity, the Test became the basis for decisions large and small at Club Aluminum. The Test gradually became a guide for every aspect of the business, creating a climate of trust and goodwill among dealers, customer and employees. It became part of the corporate culture, and eventually helped improve Club Aluminum’s reputation and finances.

In 1942, Richard Vernor of Chicago, then a director of Rotary International, suggested that Rotary adopt the Test. The R.I Board approved his proposal in January 1943 and made The 4-Way Test a component of the Vocational Service program, although today it is considered a vital element in all four avenues of Service.