Abstract: This article examines the detrimental effects of favoritism in leadership contexts, demonstrating through behavioral science and organizational case studies how preferential treatment undermines team dynamics and performance. The author presents compelling evidence that favoritism creates destructive ingroup/outgroup mentalities, leading to decreased motivation, innovation barriers, information silos, and talent loss. Drawing from extensive consulting experience, the article highlights how favoritism manifests as problematic "inner circles" that fracture team cohesion and breed resentment. Beyond merely identifying the problem, the piece offers practical, evidence-based alternatives centered on equitable recognition distribution, psychological safety promotion, and transparent evaluation criteria—providing leaders with actionable strategies to foster fairness and inclusion that ultimately enhance organizational effectiveness, employee satisfaction, and team unity.

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