This "government involvement is bad" is a crock. Regulation is what makes a society. As an institution, they are no less "ethical" than corporations, in fact, neither ethics nor morals are relevant to corporate or government bodies.
Morals and ethics are about people. Laws and regulation are about how those morals and ethics are reduced to practice.
Voluntary cooperation and peaceful competition is what makes a society. A government is just a group of people who attempt to maintain a monopoly on violence and use it to enforce their will on others. I certainly think they are less ethical then people who do not attempt to enforce their will on others.
Government created laws and regulation are just threats. They tell you nothing about what is right or ethical. They only tell you how a particular group of people want you to behave and what they will try to do to you if you refuse to obey. Anyone with enough capacity for violence and willingness to use it can create a law but no amount of force can change what is right or wrong.
Morals and ethics are about people. Laws and regulation are about how those morals and ethics are reduced to practice.