Not at my place of conventional employment, but in a university setting –
Background:
Grad students pursuing their PhD are part of the insular little community of a department, which otherwise includes the faculty and support staff. The grad students need the friendly cooperation of (at least some) faculty members within the department in order to leave with degree in hand. (You need a committee, and you can’t demand one. You need faculty members who are willing to be on your committee. Furthermore, if you are doing your work in one subfield, faculty members whose predominant work focuses on a different subfield generally will not consider being on your committee, so the pool from which you can recruit faculty members for your committee is generally going to be rather small).
Tale:
One person within a social sciences department with a research focus on gender issues and feminist theory. Unusually enough, a male person. Many grad students interested in these subjects, especially female grad students as you might suspect.
At a departmental Christmas party the story comes out that he has been having an affair with one of the grad students he was working with, and is unhappy because she is now getting married and is therefore terminating the arrangement. Nothing strictly forbidden by rules or law so far, but
a) In what was a very male department (faculty-wise), many of the female grad students wondered if they now understood why they were finding the going to be so difficult: they hadn’t become mistress to a faculty member yet! (Aha, is that how it’s done and I was naive enough to think it was just a matter of doing coursework and writing papers and doing good research projects?)
b) Her subsequent papers came back with red-inked commentary all over the margins, redo this, this is insufficient support for such-and-such, maybe you should consider changing your proposal to include blah blah…to an extent this was his style, but it seemed like he was more critical and harsher, and in addition she now was wary of arguing with him. Had he been giving her leeway before for inappropriate reasons and was now being the harsh taskmaster? Or was he being inappropriately demanding and impossible to please, in retaliation?
c) No one who had not already agreed to be on her committee would touch her with a ten-foot pole. Would folks think THEY were having an affair with the grad student who was known to have a history of sleeping with faculty? Would the feminist-theory guy resent their stepping in after he’d been working with her up until now? Given these departmental politics, no one on faculty was inclined to find out.
d) Other student started speaking of her (occasionally even TO her) in ways that implied she was not a serious student, that she had only been getting by via providing special services to a faculty member. And a serious student would not have been doing those things, right?
Somehow it didn’t seem to have a major effect on the career of the faculty member, despite the (IMHO) highly relevant question of how a professor of feminist theory could be having an affair with his own student in a situation like this and be oblivious to all the reasons why doing so is a bad idea. It’s not like his specialty was Colonialism in Africa or Linguistics and Hermeneutics or something, this was his STUFF. The both should’ve known better but she’s the one who paid the price.