Can you think of a creative initiative that might incentivize companies to adopt more ethical practices?

Yes, Capitalism can exists and be moral. Sometimes the powerful will abuse their power but Capitalism gives the people the right to choose moral companies

Capitalism is inherently anti-human and incentives to work within the system will not correct the issues.

Companies should have the right to pay employees more than minimum wage. I believe the minimum age is unfair. All companies should have their pay scale to accommodate the inflation that we face today and over the years that have passed and to come. The world would be a safer place to live, and crime would go down tremendously.

By holding then accountable to state investigations on ethical actions and spending

Bottom up, grassroots development of program concerns and objectives. Happy, healthy employees are more productive. Profit sharing should be mandatory for all public corporations.