I agree with the posts saying that this "might" have been something innocent. However, perception is reality and the crew member should not have even put themself in a position where it could have looked like it did.
I really do think this should be reported, but only the facts as the OP knows them. In this way BA can investigate and draw their own conclusions.
I also think a better title for this thread would be "Putative Mile-high Cottaging"!!