Whilst we in first world countries may be able to protest against our employers or try and steer them away from non-ethical actions.
What happens when the employer takes away the assignment in question and gives the work to an off-shore company, who's only obligation is to get paid? Where the developers of said off-shore company's obligation is to get paid so they can eat?
Do you think off-shore developers are going to have the same moral stances of a first world developer? I don't think so.
I know there are a couple of voices in this thread who think they can be that knight in shining armor, a bit like Don Quixote. However, you can't rail too much. Lest you find yourself outcast, side-lined or even fired?
I thought it was an interesting situation to ponder.