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June 6, 2011

Editorial: A Lesson In Ethics

With many of the network shows winding down into summer reruns, there hasn't been much in the way of good drama on television over the last several weeks. But Massachusetts residents haven't been lacking in the drama department, thanks to the trial of former House Speaker Sal DiMasi.

DiMasi, a Democrat from Boston’s North End, is accused of receiving $57,000 in kickbacks for steering $17.5 million in state contracts to the software company Cognos between 2005 and 2007. Cognos has since been acquired by IBM.

The federal charges against DiMasi, along with Richard D. Vitale, his financial adviser, and lobbyist Richard W. McDonough, include conspiracy and wire and mail fraud. All three have all pled not guilty.

The trial was winding down as this issue went to press, but regardless of the outcome, and whether DiMasi is found innocent or guilty, there are several key lessons about ethics to be learned from the testimony given during the trial.

Under Oath

While Gov. Deval Patrick took his turn on the stand (conveniently on the Friday before Memorial Day so there would be as little media coverage as possible), the most compelling story came from Leslie Kirwan, who served as Patrick’s finance chief when the Cognos contract was approved. She left the administration in 2009 for a job at Harvard University.

According to press reports, Kirwan bluntly copped to the fact that she would not have given her approval for the Cognos contract had she known that DiMasi was receiving kickbacks as part of the deal. That of course makes sense, hindsight being what it is. She also testified that DiMasi repeatedly pushed her to approve the contract.

The contract that has caused all this fuss was eventually cancelled when another vendor — SAS — complained about the state’s decision process and the matter was then referred to the Inspector General.

While no decision has been rendered in a court of law, the testimony thus far does offer some cautionary tales of how influence and pressure can be used in business settings. It also brings to light a culture of cozy vendor relationships on Beacon Hill that put influence above the public good.

The full circumstances of the case aren’t known, and probably will never be known outside a group of those directly involved, but we can only guess that those on the state administration side probably had an inkling that something wasn’t right with that Cognos contract. They probably heard that little voice in the back of their heads whispering that something wasn’t right, or felt that weight in the pit of their stomachs. Yet they went along.

People In Glass Houses

And we really can’t judge. We’ve all gone along just to get along at one time or another in our careers. Sometimes it’s because we truly believe a superior or mentor who assures us that this is how business is done. Other times it’s because we’re frightened of taking a stand and jeopardizing our careers.

But the DiMasi trial reminds us that getting along can have serious consequences. Ethical quandaries come across all of our desks every day. They may not include taxpayer dollars, high-level elected officials and possible jail time, but they test us just the same.

Kirwan was described as intensely uncomfortable on the stand during her testimony. And who can blame her? Who would want to be trotted out in front of a courtroom and subject to media coverage for simply doing her job? Kirwan, and the entire DiMasi episode, is a reminder to all of us to listen for that voice of caution and speak up when we suspect something is amiss. It may be painful in the short-term, but in the long-term saying something is a safer bet.

We hope that the DiMasi affair sparks real change in Boston. We also hope that change echoes throughout the vendor and business community in Massachusetts.

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