Heather @ Microsoft has an interesting take that I've not yet seen - The "mentality" of a company that's OK with it's employees' weblogs and websites, and their quasi-direct affiliation with their employer.

Heather's take on Microsoft, which I extrapolate to mean "blog friendly companies in general," is as follows:

-Companies don't want unhappy employees to be visible.
-Companies that encourage blogging are not afraid to take risks.
-Companies that encourage blogging have respect for the individual. (This is BIG!)
-Companies that encourage blogging think their employees are smart.
-[me] The company is not afraid of its employees, or what they'll say in public.

Now, what are the downsides? Comments anyone?
- Maybe it makes people assume we have extra time on our hands?
- Maybe it has another "marketing agenda" that the blogs are feeding?

Great list. The downsides (not an issue if it's a great workplace)...I know there is worry about making employees into "stars" or personal brands and having them snatched by other companies.