You seem very cavalier and accepting of the practices of your employer. Again, if you cannot see why any of this is wrong, we cannot explain it to you.

You are in a position of power and authority, and took someone into a private room and then embraced them. There are a number of things that could be said about it, but it was frankly incredibly foolish on your part. I suggest that you don't do such a thing again if you don't want to put yourself in jeopardy.

You can try and spin it that you are a warm and caring person, but it doesn't change the fact that it was completely inappropriate.