I’ve also seen this. There’s more of an acknowledgment: that people will be attracted to each other (or not),the status/dating games people play will be out and open. It will be acceptable to talk about physical/sexual qualities of your coworkers, etc. That when you are in physically close proximity you might see each others sexual parts and comment on them. It will be understood that after a breakup people will be less amicable.
You can also see this in literature: look at Les Miserables. In the factory they talk about sexual fantasies of the foreman. Whereas in the context of the upper classes it’s talked about in context of love/romanticism.
Contrary to popular believe, I find this much healthier. Emotions expressed can be dealt with and moved on. Emotions suppressed grow and fester. If it’s normal to talk about who’s is attracted to who, then everyone is aware of the sexual exploits of the general manager. Therefore people know where to set boundaries. If it’s hush hush kept quiet then the exploits of the Gm can grow.