Discussion:
Even though undefined, notifying employees that internet monitoring software is being utilized should be the first thing perspective employees are made aware of before being hired. Monitoring/Restricting software ensures that employees don't visit websites that can be harmful to the company's infrastructure, in addition, monitoring software can make sure employees are not trading or stealing company secrets.
Furthermore, I believe that it is ethically sound to monitor employee's computer activity if it's in the best interest of the company. For example, while working for the State of Michigan, whenever an employee logged into the system, the system would capture the employee's id number and the location that he/she was logged in from.
In addition, the system was setup to block unauthorized websites which could potentially have a virus or Trojan. Any company should have a vested interest in the security of their company and the software that is being utilized, which should include their employee's online activity if it's not job related.
There should be safeguards as well as due process for any in advertently visited sites. For instance, typing in the wrong phrase or misspelling a word can lead to whole lot of unwanted attention and will almost certainly trigger a virus.
As far as the business implications for employees' personal use of company assets, "Almost everything you do on your office computer can be monitored. Such monitoring is virtually unregulated. Therefore, unless company policy specifically states otherwise (and even this is not assured), your employer may listen, watch and read most of your workplace communications. Courts often have found that when employees are using an employer's equipment, their expectation of privacy is limited" (Privacy Rights Clearinghouse, 2017).
With the jewelry company in this scenario, I would use internal memos to inform employees of the company's concerns and to inform them of the computer monitoring software.