2 is a huge deal, enough to get you fired in almost all instances in Corporate America for that alone.
It's a huge deal for underlings who have to obey their masters. It's not a huge deal for masters who make the rules.
If you allow your employer to control your sexuality you are not fully human.
I mean—certainly if it turns into the kind of situation where the higher-ups can’t look the other way. It probably becomes a problem as soon as your supervisors have to think about it. It definitely becomes a problem as soon as it becomes their problem, or a distraction from what everybody’s there to do.
By the time it’s public knowledge and reflecting on the company, yes, that’s a failure—and the failure of discretion is probably closer to the board’s clammy little hearts than any particular fluids (or allegations of favoritism) that may have been swapped along the way.
It's only huge because it has been made public by a large amount of medias. If you have ever worked in any companies, you'd know the shit going on at any layers.