You say that startups should be focused on "helping people" and "ethical business" (as if there's another kind that will last in the long-term). You're forgetting two things: 1) the people that bust their backs trying to get the startup off the ground in the first place, and 2) the value those people bring to the lives of their customers when they make a great product.
Also, why the denigration of money? Try paying new employees with something other than money. Any business that doesn't pay the market rate for talent will have trouble attracting new people and retaining the good people it has. Why? Try paying your rent, your car payment, your student loans, etc. with something other than money.