Here's a poser: Suppose a public official is accused of recommending his girlfriend for a promotion, though he was the one who first flagged the potential conflict of interest and officials had refused to let him recuse himself from decisions about the woman. Should he lose his job?

That's precisely what happened in 2007 to Paul Wolfowitz, who was run out of the World Bank on the pretext that he had given his girlfriend a raise. In fact, Mr. Wolfowitz had made bank officials aware that his girlfriend...