Twenty-four words changed everything for a failing company in 1932. Those same words continue to guide business leaders today, nearly a century later. I know because they guide Mark and me every day at HireSmart. 

The story begins with Herbert Taylor, facing what seemed like an impossible task: save the Club Aluminum Company from bankruptcy. The company owed creditors over $400,000 more than its total assets. They had good products and good people, but so did their financially stronger competitors.

Taylor realized they needed something their competition didn’t have. Not a better product or flashier marketing, but something deeper. He needed a way to build character, dependability, and service-mindedness throughout his organization. That’s when he created what we now know as 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? 

A Simple Framework for Complex Decisions 

What Taylor created wasn’t just a business strategy. It was a complete philosophy for ethical decision-making. He believed that “in right there is might” and was determined to always be right, even when it was difficult or costly. 

His industry had codes of ethics, like most others, but they were long and impractical. Taylor needed something different: a simple measuring stick that everyone could quickly memorize and apply to real situations. The test couldn’t be preachy or complicated. It had to work in the heat of actual business decisions. 

The breakthrough came when he realized the questions shouldn’t tell people what they must do. Instead, they should ask questions that would help people determine for themselves whether their choices were right or wrong. This approach respected people’s intelligence while providing clear guidance. 

Five years later, Club Aluminum’s indebtedness was paid off and during the next 15 years, the firm distributed more than $1 million in dividends to its stockholders. The four-way test worked then. It works now. 

Modern research proves Taylor’s insight. 68% of consumers prioritize ethical practices when making purchasing decisions, and ethical brands see significant increases in customer loyalty. Yet 90% of business executives think customers highly trust their companies while only 30% of consumers actually do.

Values in Action 

Of course, I associate the Four-Way Test with the smell of bacon and eggs. Every Friday morning, Mark and I join our local Rotary Club for breakfast at a small-town restaurant. Pastor Calvin, at 95, delivers his weekly “moment of Rotary,” standing before the Four-Way Test banner and reminding us of its importance in daily life. 

But the real power of these principles shows up in action. Our club just completed its 1,000th handicap ramp for local citizens who struggle to get in and out of their houses. We deliver Meals on Wheels to elderly residents who can’t easily shop or cook for themselves. Every week, club members spend time reading with second graders who need extra support. 

These service projects aren’t random acts of kindness. They flow from the same ethical framework that should guide our business decisions. Everyone needs a code, a way to stay grounded in what is morally right when life gets complicated and choices become difficult. 

SMARTER Core Values 

When Mark and I started HireSmart, we recognized immediately that we needed a code for everyone in our organization. We couldn’t expect our team to make consistent decisions without clear principles to guide them. That’s why we created HireSmart’s SMARTER core values. 

Service, Mindful, Available, Respectful, Team, Ethics & Integrity, and Relationships — these seven principles function as our organizational compass. Just like Taylor’s Four-Way Test, they help our team members determine whether their choices align with our company’s character. 

The connection between the Four-Way Test and our SMARTER values is obvious. When we ask “Is it the truth?” we’re living our Ethics & Integrity value. When we consider “Is it fair to all concerned?” we’re practicing Respect. “Will it build goodwill?” connects directly to our focus on Relationships and Team. 

At HireSmart, our SMARTER values translate into specific behaviors. Service means our virtual employees don’t just complete assigned tasks. They actively look for ways to exceed expectations and add value beyond what clients originally requested. 

The Mindful value shapes how we approach every client relationship. We’re not satisfied with adequate performance. We want clients who become advocates, sharing their positive experiences with other business owners who could benefit from virtual employees. 

Our commitment to Ethics & Integrity shows up in the hard decisions. When we could take shortcuts that might increase profits but compromise quality, our values provide clear guidance. We choose the path that serves all concerned, even when doing so requires more time or investment. 

The Foundation for Lasting Success 

Having clear values creates consistency across all business decisions. Whether facing staffing challenges, pricing decisions, or partnership opportunities, established principles provide guidance when the right path isn’t immediately obvious. 

The beauty of value-driven business lies in its simplicity. You don’t have to reinvent your moral compass for each situation. Instead, you apply consistent standards that reflect your character and serve your community’s best interests. 

This approach builds something more valuable than short-term profits. Companies grounded in solid values earn trust, attract quality people, and create lasting relationships that sustain success through changing circumstances.

Herbert Taylor’s twenty-four-word solution didn’t just save his company. It created a model that continues to transform businesses today. 

Every Friday morning, surrounded by the aroma of breakfast and words of wisdom from fellow Rotarians, I’m reminded that values aren’t abstract concepts. They’re practical tools that guide real decisions, whether you’re helping a neighbor access their home or serving clients halfway around the world. 

The Four-Way Test worked for Taylor because it honored a simple truth: businesses built on character create value that extends far beyond profit margins. This Thanksgiving, what foundation are you building for your own success? 

In a world where ethical conduct builds trust and positive relations with stakeholders, the companies that embrace clear ethical frameworks like the Four-Way Test position themselves for sustainable growth. Small leaks of dysfunction can sink entire organizations, but values-driven leadership creates unshakeable foundations. 

If you’re ready to explore how values-driven business practices can transform your operations, I’d love to chat. Click here to schedule a free consultation about building a business that passes the Four-Way Test and creates lasting value for all concerned.