Karma or reputation or whatever it is is still badly executed ingame so it need some overhaul at first place. And as Boat said there is namecolorizing, which stands for your friend/foe list until it gets implemented right into the game. But for now it will have to be enough.
Anyway this would not work since the main idea is that players themselves would decide who is bad and who is good, but:
- when I PvP my enemies will mark me as bad, but in regular wasteland I'm not PK
- huge gangs have more members/alts = more votes to alter their karma to their liking
- people are not objective
Since FOnline does not have any natural friends or enemies (like Alliance and Horde in WoW), then everyone is potential enemy just like in Matrix. So get used to it, be smart, play smart, mark your enemies, share them with your friends and through this stay alive.