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Why embrace it?
Because it feels good! It means there's always something to discuss...and it's so true that Mandy had to sleep with her boss to land that promotion. And better to discuss it with the rest of the office than with Mandy herself - you certainly wouldn't want to fall out with her now she's in charge of you! 

Handling your gossiping
Careful who you share things with. If you're dying to let some juicy goss out of the bag, go ahead...but not to people who are close to the person you're dishing the dirt on. It will backfire.