I had the first impression as you but IIUC they are saying the rep's poor ethics/judgement are enough to make them unemployable and we should all realize and agree or our judgement is also questionable.

E.g. Bob's super smart and gets 10 times the work done as anyone else but he also sexually harasses the secretary and dips into the petty cash drawer at least once a week.

It should be clear we don't want to have Bob as our employee. See Susan Fowler's experience with her boss at Uber who sexually propositioned her repeatedly but HR said they would not remove because he was a high performer... https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-on...