It's wrong and often is handled the wrong way. (Especially in schools.) Countless times my cousin that's a year younger than me has reported him getting bullied to teachers all the time. And they didn't do anything about it. So when I stepped in instead, and kicked the kids a** that was messing with him, I get suspended for a week for protecting my cousin that nobody else would.
I think that bullying is negative act that causes others to be intimidated leading to depression and suicidal thoughts in adulthood. It should not be tolerated and the bullies should be reported to the relevant authorities for action to be taken against them. You can find articles related to bullying at http://articles.latimes.com/keyword/bullying.