Very much a federal government feel to this one. Basically managers can't tell the difference between what might be a boondoggle and what might be necessary travel. They don't dare call it a boondoggle though because of the shenanigans that they pull with their travel. So take it all away or let employees travel at will.
I'd vote for B. Long-term corporate health has long been sacrificed for short-term profits. And, not coincidentally, for quarterly bonuses. The Federal and state governments do the same, but for elections.