Some companies have blocked YouTube and other sites that can be used for non-work related activities. They also have a dress code and expense policies the size of books to cover for every possible edge case.
Almost every guideline in these documents is there because at some point someone did something they were not supposed to. In other words, to avoid an offense someone once committed, every employee is forever held to a new rule.
And how do people act when they are treated as children…
This situation is easy to fix. Almost all rules can be replaced by a simple one: “Do what is in the best interest of the company.”
“Am I allowed to order room service?”, “Can I take the expensive flight?”, “Is it ok if I wear a t-shirt to the office?”. All of these can be answered by considering what is best for the company.
Some people inevitably cannot handle the liberty offered and will take advantage. Accepting that this will happen (and letting these people go) is infinitely better than basing policies on the lowest common denominator.