What is the Cardinal Approach?

The Cardinal Approach is an economic theory that focuses on the satisfaction or utility that individuals derive from consuming goods and services. It emphasizes the subjective nature of utility, meaning that individuals have different preferences and values when it comes to consuming goods. This approach contrasts with the ordinal approach, which ranks preferences in terms of relative satisfaction rather than assigning specific numerical values to utility. The Cardinal Approach is often used in welfare economics to analyze how different policies and interventions can improve overall societal well-being.

The Cardinal Approach, also known as the "four-way test," is a set of ethical guidelines developed by Rotarians to guide their thoughts, words, and actions. It was created by Herbert J. Taylor in 1932 and became a cornerstone of Rotary's ethical culture.

The four questions of the Cardinal Approach are:

1. Is it the TRUTH?
This assesses the accuracy and honesty of information.

2. Is it FAIR to all concerned?
This considers the equitable distribution of benefits and burdens.

3. Will it build GOODWILL and better FRIENDSHIPS?
This evaluates the potential impact on relationships and reputation.

4. Will it be BENEFICIAL to all concerned?
This assesses the long-term effects and whether they align with the greater good.

By applying these questions to their decisions, Rotarians strive to:

- Uphold ethical principles in personal and professional life.
- Foster trust and credibility.
- Promote harmonious relationships.
- Make decisions that benefit the community and the world.

The Cardinal Approach is not just a set of rules; it is a mindset that encourages Rotarians to consider the ethical implications of their actions and to make choices that align with their values. It is a powerful tool for personal and professional growth and serves as a guiding principle for Rotarians worldwide.