Given that what these people are being criticized for are not intrinsic traits, those people have the option to change their behavior in order to not be ostracized. I am certainty not under any obligation to give anyone my business.

"What if all the bad people lost their jobs?"

Well, that certainly might encourage them to rethink whether being bad is working out for them.

And yes, I'd say that route sounds to me like it will reduce harm in several ways.