This attitude doesn't encourage responsible behavior. It's the same policy that was tried by rewarding children for failure under the guise that the attempt itself was good enough.

Allowing a different set of rules based on generational expectations comes alarmingly close to crossing the Federal guidelines against age discrimination. If BYOD and Social Networking is encouraged on company time then you would have to allow older workers to bring their golf clubs to work and get paid to play golf, and I would insist that I be allowed to bring my skiis to work and get paid to go skiing.

What employer thinks they can succeed in a business environment by encouraging employees to chat on Facebook, Browse, and give friends priority over business while on company time. A company needs to meet the bottom line to succeed and continue its operation - its called work for a reason.