An entrepreneurship article in Inc. magazine focuses on the importance of ethics in entrepreneurship. Appropriately titled Ethics and Entrepreneurship, this article discusses the topic of fudging the truth on company financials. It notes the fact that the CEOs of many Fortune 500 companies resorted to posturing and half truths to win more business during the early days of the company. Some even admit to outright deception, but a clear line can be drawn between outright lies and posturing.
According to the CEO of the large mobile phone company Let’s Talk, when put in a position with his back against the wall he had to resort to lies to survive. In general, CEOs who started up their companies on a low budget resorted to some financial fudging at much higher rates than those who started with large budgets.