"Research done by the Free University of Bozen-Bolzanohas in Italy concluded that happy software developers are better at solving analytical problems. 'Even simple and short activities', the researchers note, 'may impact the affective states of software developers.'
Many large software companies have been providing various perks to developers, hoping that they will become more productive. Based on a study of 42 students from the Faculty of Computer Science, this research seems to validate that practice. Its findings suggest that 'the happiest software developers are more productive in analytical problem solving performance.' This is in contradiction to previous studies, most of which concluding that negative affective states foster analytic problem-solving performance.
Yeah, it would make sense that beating, if you will, people into doing something faster would increase the speed of their output in the short term, but then they'd doubtlessly get stressed and upset, leading to apathy and decreased performance in the long run. (Also c'mon that's unethical, heh)
Guess you've never worked in a "right to work" state... the employer has all the cards. They will do what they like and get away with it. Like it or get another job.
The truth of the matter is many of these kinds of employers don't want you to stick around for long because a long term employee might cost them money... which means smaller management bonuses so they don't care if they are abusive.
it's only unethical in some countries, in other's it's standard business practice.