I agree with your sentiment. That said, would you expect ethics and morals from a CEO that organized a Sally Hemings[1]-Thomas Jefferson party? Would you expect ethics and morals from a CEO that used to joke about urinating on women? Which is why I would avoid interaction with that startup.

[1] Sally Hemings was the 14 year old black slave girl that the 44 year old Thomas Jefferson had 6 kids with.

[2] http://valleywag.gawker.com/fuck-bitches-get-leid-the-sleazy...

[3] http://www.salon.com/2014/05/29/6_leaked_emails_that_ruined_...

Orgs are made of people. I prefer to interact with ethical people over unethical people. Don't see what's difficult about that.

Running with a pack may embolden people to act unethically, but if anything, that's more reason to shun bad actors.

Not true, many people expect that and criticize them if they fail to meet this standard.