I would argue that, yes, there is something wrong with that. In either scenario the person has received something for which they haven't paid.

Unlike the airlines here in the US, which have all sorts of schemes for receiving "free" upgrades -- thus leading to all sorts of debates and debacles in which someone deserving of being upgraded wasn't -- BA has, to the best of my knowledge, maintained a policy that "if you want to travel in a higher class, pay for it (with cash, miles, etc...)"

I think that the BA policy is fair and just. Should staff be allowed to arrange discounts for purchases by a friend? I don't have a problem with that. Should you be able to walk up to your friend manning a gate or ticket counter and secure an upgrade? I'd say no.

-- Bill