Most people in a company won't even know about illegal activities at the top. So that wouldn't work. And if there's illegal activity that ought to be punished

Most people in a company won't even know about illegal activities at the top. So that wouldn't work. And if there's illegal activity that ought to be punished at the employee level, then that's what criminal statutes and charges are for. "Losing your job" is a punishment that is too much for innocent people who just work there, but far too little for anyone actually directly engaging in criminal activity.