This 100%. It reminds me of the similar issue of zero-hour contracts and living wages. One person I know complained that putting restrictions on zero hour contacts, and upping the amount that he would have to pay workers, would mean he couldn't hire any (for his extremely early-stage startup with no investment(!)).
In a similar vein, the answer is the same -- if you can't afford to pay employees, don't hire them.
And this applies more generally than either of our examples -- if a company cannot afford to do something ethically, then it shouldn't do it at all. A business that cannot survive when forced to comply with the bare minimum of ethical practices deserves to fail. You cannot simultaneously believe in a capitalist market without embracing with open arms, the failure of companies that couldn't stick it.