In corporate America, sexual harrassment is defined simply as:
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Originally Posted by Wikipedia
"Sexual harassment is harassment of a sexual nature, typically in the workplace or other setting where raising objections or refusing may have negative consequences. In American employment law, it is any unwelcome sexual advance or conduct on the job, having the effect of making the workplace intimidating, hostile or offensive. Sexual harassment is considered a form of illegal discrimination."
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The notion of consequences does not imply a hierarchical relationship. A co-worker can also create consequences by threats, withholding normal courtesies or support, etc. However, consequences are not necessary for sexual harrassment to exist. A co-worker who constantly relates sexual stories, jokes, or innuendo that upset another co-worker is also guilty of sexual harrassment.
I am not a lawyer, but the company I work for requires sexual harrassment training of all employees annually so I've been through the course a few times now.
If you've been formally accused, you better learn your rights and exercise them. Companies have too much at stake in this area and most will follow up a complaint with some type of investigation. The operating assumption generally favors the employee who made the initial complaint.