In the business world there is often what is referred to as an inner circle, a group of high ranking colleagues who have their own circle that the majority are kept out of. There are also examples of inner circles in other types of organisation too.
The problem with inner circles is that they create a division that casts everyone as lesser or below those in the inner circle. I guess you could say that everyone else is in the outer circle.
Any division creates conflict and there is an us and a them. Within an organisation if there is division within it, hopes of working together are reduced. The idea of a circle is a positive one though, what matters is how many people are included within it. It is better to be inclusive than exclusive. The more we include the better our society will be.