That’s not what it means.

if their continued involvement is deemed ethically unacceptable

Meaning their involvement in the projects or other business activities. As I understand it, depending on their behaviour after the violations committed, and maybe the nature of the work.

E.g., someone who previously committed sexual assault should probably not work on a project that is a manga series featuring scenes of similar nature.

I have no idea how they’d evaluate the first part, but I can appreciate the sentiment.