I totally agree -- I work for a business like this right now, but the business is 100% owned by the cofounders. Toms or Patagonia or any other number of examples abound.
The difference between us and Etsy though is Etsy was losing millions of dollars, and took on VC, and continued losing millions. I wouldn't say the investors were "were more interested in profit than doing good," except incidentally. They were/are interested in keeping the ship moving; no entity, not even a charity or non-profit, can run in the red quarter after quarter and still continue to exist. This isn't profit or no profit, this is surviving or folding. Would it be better for the world if Etsy weren't around at all? I don't think so, but I'm pragmatic like that.