Sadly selecting for individuals who cheat might help the company navigate ethics/regulatory issues. I have seen many instances of people treating regulation as an annoying roadblock to work around, not something worth honoring.
That's something this community celebrates. Look at how much Uber and AirBNB are touted as success stories when really they were illegal enterprises allowing individuals to violate the law (taxi licenses, rental laws) for profit.
It's very easy to convince yourself that some laws are not worth respecting. (Ever drive 56 in a 55 zone?)
Taxi laws are an instance of almost 100% public corruption, unnecessary bureaucracy, and regulatory capture, but at the same time they would have been almost impossible to dislodge except through widespread disobedience. What happened with Uber and Lyft was for the best. The market spoke.