3. Organizational Conflict
When employees perceive the favoritism to be widespread, such situation may lead to organizational conflict. It would not only be conflict between other employees and favored employees but also with the executive or management and employees. If such situation happens, then working environment becoming not conducive for other people to work. The situation may lead to some employees take legal action against employers who engage in egregious favoritism, citing preferential treatment based on gender or ethnicity. If workplace favoritism is widespread, for example, an employer offers preferential treatment to workers based on sexual favors, employees could cite a hostile work environment. This can lead to serious repercussions, including court fees, restitution awards and loss of professional reputation.