As I understand it, using this scheme, the company is avoiding punishment for their wrongdoings when it could be larger than they're willing to pay. They bankrupt some minor part of their budget instead of bankrupting the entire company.

When a serial killer gets the electric chair, most people consider that a fair punishment. No? So tell me, if a judge wanted to apply capital punishment to a company, which is not even a living thing, it's just money and stamped papers. How could it do that, when the company can use this scheme to escape?