I don’t like it either but blame goes to the top of the org chart. That’s not illegal or, by the standards of the field, flagrantly unethical so it’s a bit extreme to expect someone to resign over.
I’m not saying it’s great but … the tech industry has a lot of problems and I can sympathize with someone who isn’t quick to resign when most of the alternatives aren’t clearly better. It’s a lot easier to say someone else should take a moral stance when you personally won’t have to pay their bills.
The unethical part of the example that I was referring to is, you have the good thing built, but you are refusing to give it to some people, for bad reasons.