Company reputation can be spoiled by the employees if they use it for illegal purpose. All are not equal in this world. If any employee of a company is unethical to his work and company he may not be hesitated to violent any rule outside the company by using company mail. So, email monitoring is essential.
At work, it is fine if people are not going to be able every email address or internet web site. When there are specific sites that people know will be allowed and looked at, they are more likely to not be distracted. A few personal emails can be allowed, but nothing excessive and certainly no shopping sites.
Such methods as blocking certain websites and internet activity is possible without actually monitoring the employees activity. Also, if the employee does not actually work while on the internet, it does not really matter as long as the employee completes all that he had to do. If the internet privilege is abused and it visibly affects the efficiency of the worker then just give him the good ol' warning. If he does not comply then just fire him. There is no need to monitor their internet activity.
American courts have ruled that workers have essentially no privacy rights
when it comes to any of their communications at work. They are on company
time, and the company has a right to everything they produce. So the legal issue
is settled. However, companies that want to keep workers satisfied ought to
think twice before they invade what workers understandably see as their
privacy. My lunch date is none of my company’s business. If it acts as if it is,
I am likely to become resentful, perhaps to the point of working elsewhere.