Putting the ethical standards aside this type of behavior can cause all sort of difficulty in the workplace.
An example.......
A supervisor who does not keep a certain professional distance from his employees and considers them friends, can cause issues for those who are not considered friends. In the office enviroment the behavior is easily detected and animosities develop. The actions of 'friends' are looked upon as sucking-up, while those' not considered friends' are often ridiculed, or left out of important decisions. The end result is a toxic work enviroment, which is detrimental to the workplace, and all involved.
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