Had lunch with Halley Suitt of Halley's Comment and drinks later with Halley and Thomas A. Stewart, the editor of the Harvard Business Review. Halley had recently written a piece for the HBR called "A Blogger in Their Midst" as a fictional case study. The story features "Glove Girl" (who reminds me a lot of Gnome Girl) who is a blogger in a big medical supplies company. Glove Girl is blogging without permission of the company and her voice becomes very influential. The management of the company is posed with both the benefit of an increase in sales and visibility through Glove Girl and the risk of her honest and sometimes critical voice.
It's a great article and summarized what will probably happen in almost any company where the CEO is to busy to "get it" while the employees begin to discover blogging. At Groove, Ray Ozzie does and amazing job of allowing people to blog, but defining a policy for it. I think management in any company should be trying to "figure this out" as soon as possible and this article is a good place to start.
Unfortunately the HBR is not online. I heard there was a unauthorized copy of the article online, but I don't have link. Halley found out about it, but didn't link to it. It is obviously a moral dilemma. My feeling would be to let the digital version out. The cartoons/illustrations are with $16.95 so you should buy the paper copy anyway. It's "a bad thing" that we can link to it and talk about it online.