That is how it's supposed to work. Unfortunately that won't make a dent in the grand scheme of things: Cyclists are few and far between.

On an individual basis it may work if you happen to be in a field where you may be much more highly valued than you're paid. You may then find your boss or his boss in the HR department telling them that you'll be happy or they'll be finding new jobs.

It's such a ridiculously cheap thing to argue over. I bet they spend twice the cost of a bike rack every week on your salary. Heck, your desk chair may cost more than a bike rack and the Ford Pinto you'd drive instead will certainly look worse outside the building. I would guess that they're saying no because that's their default answer for everything.