what exactly does this mean?

does this typically include worker / customer relations?

say for instance i run a register for a company/store and i make special pricing for people who i have become familiar with. is this fraternization ?

what if i use those customers i have become friendly with to complain about another employee?

It's when higher management becomes overly familiar with the ones below him that he's supposed to manage. When they hang out too much, there comes favoritism and sometimes they promote them based on friendship. In the jobs I've been at, they mostly try to discourage it because it could jeopardize business (sometimes).

Often it involves porking

Or when you hang out with the customers you are providing service to, frowned upon in my bizz-->

mdiver said:

Ohhhh realllyyyy?????

horatio said:

That's called a hook up!
Fraternizing is this:
http://prince.org/msg/100/290563

I never will understand how people expect to have serious romantic relationships with people they work with. Thats too much smoothering for me.