I grew a close trimmed beard and was also told, "We can't stop you, but to make it "easier" on you we will be suspending all your "privileges" until you shave." This was after one of the eldurrs had come over and asked me what was on my face, and then sat and had a couple cold ones.
Two weeks later I was informed that I was on the KH cleaning schedule for the week. On Sunday I was asked why I had not cleaned anything. I said, "If my facial hair somehow makes me unfit for any so-called privileges then I am also not good enough to scrub your toilets!"
The beard will stay. Hair on my face is great as a thorn in their side.