What is your definition of "Political Correctness" and how does it affect our society?

Should we be more concerned about convincing students that they deserve to have high levels of self-esteem merely because they exist, regardless of their accomplishments (or lack thereof) or their misbehavior/deviance/criminality, or should we encourage excellence, performance, and good citizenship by rewarding it, and punishing those who are slackers or depraved criminals?