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I will say that more often than not, a relationship of this kind will indeed be considered inappropriate in the context of employment. On my opinion, as a result of a private relationship between a supervisor and a subordinate, the supervisor has placed him/herself in a position where he/she cannot perform the duties as required by the Supervisory position. It is not appropriate for a supervisor to do such a task. It will cause problems to where other peers will feel that the person is getting preferential treatment from that supervisor.
It could also be considered sexual harassment and if she/he was up for promotion, they could say it was due to you. This is creating a "hostile work environment" and is subject to criminal and civil penalties. Many companies frown upon it. In some companies, it is grounds for dismissal. Couple problems have no place in a business. There should be this ethics and organization politics play in the life of the supervisor. Here are the guidelines: 1) don’t be overly eager to socialize with subordinates or superiors; 2) use common sense. Don’t do anything while socializing that will later cause problems; (3) Be yourself. Don’t try to put on a false front to impress your boss or other superiors; (4) Don’t try to use your rank when socializing with subordinates; (5) Don’t make any work-related promises to subordinates while socializing; and (6) Don’t date or become romantically involved with subordinates.