Every person on the chain has own ethical responsibilities. Both management and engineers. If you knowing participate on something like that, you share responsibility. I know that not participating has a cost and somethings it is too high. However, plenty of times it is not that high and you actually can get different job. Take people who write spyware or write fishy parts of Uber code (not everybody working there!) - they have a choice.

I guarantee you that there were some engineers who recognized situation and left or were let go sooner. It is not just magical heroes. Normal people, men and women take decisions of the "less cool company, less cool project but it is fishy here so I leave" normally. Maybe we should praise and celebrate this sort of decisions more instead of automatically considered them losers. As of now, engineers nor valley don't really value doing the right thing nor are willing to discuss what is the right thing - it values winners no matter what path they took.