And all those employees and customers are punished for the crimes of a few.

For egregious cases, yes. Absolutely. That very short term pain is almost instantly offset by the societal gain brought about by companies' better adherence to the law. It's incredible just how much good it would do, and how quickly this would happen.

And please don't assume a "you wouldn't if it was your own employer" - no, I very much would, despite the struggles it would cause.