The stock market is not the economy. All you are ultimately advocating for is keeping the exiting corrupt corporate leadership in charge and preventing market forces from replacing them with ethical leaders.

When you give someone money to do a thing you have responsibility about that thing. If someone is running a clearly illegal business (trafficing illegal drugs, humans) and you are aware of this and invest in their business then you become an accessory you are not immune to liability for crimes you were aware of before investing - you are immune to liability for actions taken without your knowledge (which is what we assume the great deal of actions taken by investees are).

Causing another massive shock to the stock market is the correct response here because nearly everyone is engaged in behavior that harms society and should be stopped. Also, the market will recover and really isn't that important. If a small proportion of actors were engaged in this activity then getting an industry compact or other token gesture might be good enough to correct it.