What is Bad About Being Politically Correct?

Relationships are either enhanced or destroyed by the issue of political correctness. Some will claim that people now are easily offended while others want people to call out unacceptable behavior.  By definition, political correctness is “conforming to a belief that language and practices which could offend political sensibilities (as in matters of sex or race) should be eliminated.” So what happens when someone at work is offended by what someone says about politics, race, gender among others? Other than jeopardizing team cohesiveness, can the “offender” be putting the company at risk of a lawsuit?