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if they lose employees for such reasons of banning this or that, it will reflect in profits somehow. Visa versa as well, if it's a real and big drain, then it makes no sense to foot the bill. Just as long as you've got a usage and conduct policy in place and KNOWN to your old and new employees and you don't violate local personal and privacy workplace laws, go on and crank down the internet access. Keep it strictly biz. Many a company functions day to day with extremely limited personalization for its drones. Once the distractions are completely eliminated, then employees can expect higher cost of living increases, regular and increasing merit bonuses, an eye for keeping tabs on runaway executive spending and work violations, and better returns for the public and private sectors being serviced by said companies and institutions.
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