The year 2000 was a transition year in which Scotts, Miracle Gro, Ortho, and Round Up merged following buy outs in the 90's. It wasn't a very good year and in late 2000 there was a complete restructuring and the company, under Hagedorn, seemed to become much more frugal where employee costs were concerned (I was terminated, rehired with no benefits and can't get them back because I get laid off for a few weeks which makes me a seasonal employee). There's also a lot more job stress and pressure to be competitive not just in the marketplace but with other employees.
This is where the smoking policy comes in. In my opinion it's a Hagedorn thing about money and competition and his desire to present some kind of ideal picture of the company. I wouldn't be surprised if the next target will be overweight employees if he can show overweight employees cost the company more money in health or other costs.
I liked the company a lot better before Hagedorn but the shareholders probably love him.
Just goes to show you that when you accept goodies from anyone, especially Uncle Sam, you give up some of your freedom. Letting your employer decide your private lifestyle in exchange for medical benefits is a perfect example.
I personally think the stockholder driven quarter to quarter performance metrics are one of the banes of modern corporate decision making but that's another discusion entirely.