Usually nobody is specifically looking at every little thing you do. However it CAN all be monitored and recorded, and it doesn't even require that any software be loaded on the individual workstations. If your company has a firewall, any and all traffic to the Internet or other parts of the intranet have to pass through that server. All it takes is a packet sniffer on the server, and they can tell exactly what was sent (the only way around that is to encrypt the data before it is sent, which most programs do not do). In these cases, the server is usually only watching out for specific keywords such as web site addresses (usually the server is also proxying for the LAN). Only in the most strict situations would the server log every instance that a dirty word was sent over the network. It would also be rather difficult for them to log and store EVERYTHING that ever goes across the LAN, forever; the storage space required would simply be too much (even if it is backed up onto tape or something), but it isn't impossible.