The materiality increases dramatically if the applicant misrepresents the value of inventory to convince a lender to loan money to his business. Honesty, in turn, is only one component of integrity, which means soundness of moral character, as shown by dealings with others. A person can be honest but lack integrity if, for example, he knowingly takes advantage of people in his business dealings. While, conceptually, integrity appears preferable to honesty, it is difficult to assess and apply. Integrity is a complex concept that involves coherent commitment to a personal order of moral principles.
Commitments can include honesty, family, friendship, religion, honor, country or fairness.
Persons order these commitments in such a way that it is acceptable to violate some commitments in order to honor others. For many people it is acceptable to lie, if necessary, to protect another from harm or injustice. For example, integrity is not compromised if a person shelters a victim of spousal abuse and lies to the spouse when questioned as to the individual's whereabouts. Integrity means upholding these commitments in the face of temptation or challenge for the right reasons. Attempting to test a person's integrity consistently tests the skills of the regulators.