For all the complaints about the working world, it does occasionally come with some benefits. Those companies that aren't too stingy acknowledge that a few perks can make their employees happier and maybe even more inclined to do a better job for them. If it's in the budget, it should be a no-brainer.
That being said, these kinds of arrangements have to operate with a certain level of trust. Somebody who exploits them unfairly could end up ruining it for everyone, or at the very least, getting in trouble themselves. Of course, employees are going to try to use their benefits to the maximum of their ability, but it is sensible to have some limits. Not only can employers be fickle, but other people can be inclined to use the worker so that they can make the most of their perks, too. It is yet another scenario where it is necessary to have firm boundaries and be careful who you share your goodwill with. There will always be a person who wants to take things too far and turn it into a bad thing instead.