I have plenty of experience in this. I have been a Union Official for over 12 years and most every corporation has an Ethics Policy. They can and do terminate people for violating the Ethics Policy as it is a condition of your employment. I have arbitrated more than a few of these cases and I will say that a neutral arbitrator does not usually look too kindly on these types of cases.
Cases without an arrest or a charge? For an offence that didnt happen at work?
I work in corporate governance and operations for one of the largest private equity firms in the world. In my current role, I sit on the other side of the table from you for an entity with many thousands of employees.
I can guarantee you that we would never try to suspend or exit an employee under the above conditions. If we felt that we had no choice due to outside pressure, we would come to agreement and pay out. Granted this is in UK, DACHNL and UAE but it would be the same at most of our NA entities.
We have lots of money, like the NHL, and are a huge target for litigation. Council is always risk adverse with labour relations. We would also never try to be so overly broad in non-compete or morality clauses. Courts hate it and we prefer specific and enforceable clauses.
If you actually believe what you wrote, I will personally give you a recommendation to work at one of the unions that represent our employees!