Additionally, I think there's a really important difference between following the law and being a moral person (or a moral university, or a moral corporation). The law might approximate our conception of morality, but it doesn't cover it completely. There is an enormous grey area of activity that is legal, immoral, and newsworthy.
As an aside, perhaps one reason why there are so many "young people disenchanted with democracy" is your attitude: that a never-ending war between lawyers (looking for loopholes) and lawmakers (who should, in theory, be closing loopholes) is a feature. If that's a feature of democracy then maybe we should take another look at our options.
(I don't really feel that way. Well, sometimes I do, but on average I think democracy is the best we're going to get).