Question: What are some of the ethical challenges that can be created when building a business through bootstrapping and how best can an entrepreneur avoid them?
Answer: Do the right thing, always. I find it very difficult to discuss ethics in a generalized way. Starting a business can push individuals to stretch the truth for competitive advantage. This can come in any number of ways. Owners might claim to be bigger and more established to lure investors or clients. They could attract employees or customers with exaggerated tales of prospects. They might claim to have certain key elements in place before they are locked down simply to calm key players. The opportunities for fudging will only multiply as a company gains traction. Founder/owners can justify their extreme behavior by saying its all for the company—that it’s business, not personal. But of course it really is all personal, to someone.
So I think the real issue is quite simple. Do the right thing always. Be honest to people. Practice the golden rule. And always do what you say you will do. I truly believe that a culture of openness and honesty foments more of the same, while one that sanctions untruths will inevitably create more lies.
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