If you tax the company, both sides will be affected. The company directly through the fines, but also the workers indirectly as the company pay structure will have to adjust to remain viable. If you only tax the workers, only one side of that equation is affected.
>They aren't advocating fining for ethical violations,
Your statement is a contradiction of GP's statement. Preferring the side with better 'ethical claim' is in effect a redistribution in the form of discount to the more 'ethical' with a fine to the less 'ethical'.
1) Fines are appraised for damages
2) When there are competing claims, one should favor the side with a stronger ethical foundation
These are not equivalent. Just because #1 is true does not mean fines are appraised for ethics violations. They also don't have to be mutually exclusive. Not sure if you're trying to misdirect or just misunderstanding the distinction.