Playing Favorites – Romantic or Otherwise – Is a Messy Game in the Workplace

"This spring, World Bank president Paul Wolfowitz was forced out after being accused of arranging a big raise and promotion for a woman with whom he was having a relationship. As anyone who works in an office knows, though, favoritism isn't confined to love and sex: Family relationships and close friendships can upset co-workers' sense of fairness, too, and end up undermining an organization's performance. What's the solution? There's no one answer, according to Wharton faculty and other experts, but companies would be well-advised to keep their rewards systems transparent and to have clear policies regarding conflicts of interest."

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