Who polices the VCs? It seems like they have no accountability, even financially speaking. If one investment fails they have nine more to reallocate towards, so to speak.
Great question. They benefit tremendously by minimizing their own risk and maximizing the leverage they have over founders they invest in.
Now the problem is, what if people still use something and give their money to even if that service/company is unethical?
Is it unethical to make very bad employment deals with people who have no better opportunities on the job market?
Well, now that's where again people come in. Some people say, no, because if they don't like the job, they can start their own company (ehm, ehm, maybe that's why we are here, too many people trying to start stupid companies built on almost stealing from each other). Some people say, fuck no, that's just a race to the bottom Somalia.
Some people pitch NIT (negative income tax, a form of universal basic income). Some full blown direct action style socialism/anarchism. ¯\_(ツ)_/¯