I don't disagree, but consider that many of these engineers are sitting on illiquid stock options valued at millions to tens of millions of dollars.
You're asking people to stand up for what's right when it may cost them millions of dollars of incentives and the loss of years of their life in career investment. That doesn't make it right to look the other way when these kind of abuses occur, but is it any wonder that people don't speak up when the incentives are lined up so strongly against doing so?
You're being surprisingly lenient in your assessment here. I'd argue they need to tell their bosses to fuck off and find another job.