Comment by kemayo
You can think of mutual-loyalty as an extended transaction, if you prefer. If, in exchange for you not planning on leaving the company, the company actively does its best to treat you well and preserve your job long-term, that can be a good trade-off.
The mutuality is important. You absolutely shouldn't think of yourself as "loyal" to a company that won't stick up for you. (And many companies won't, to be clear. If asked to choose between cutting executive salaries by 2% and firing you, most companies won't think too hard about that. You shouldn't be loyal to those ones.)
I like the thought of this but how does it work in practice?
The company treats me well and preserves my job while I'm planning not to leave. Until they don't. Because once the transaction is more trouble than its worth - either financially, or politically, or interpersonally - I'm gone. But if I am planning to leave, the company doesn't know that and treats me the exact same way.