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yes a proxy server logs where everyone has been, we use a few proxy servers in the school i work but the only problem is you need to look at them on a regular bases and lets just say if your company is big and has a load of computer's that can be one hell of a big log file which to be frank you cant be borthered looking at
if you use proxy setting that arent part of your company then they wont be logged.
but most companies firewalls will block anything like this!
as for log files, it isnt gonna be a large file you just look at. your bosses will get automated web stats showing the most visited sites, highest internet user etc etc!