That is an extreme example, and not a fair one, blood diamonds are a major labour issue, but usually when a company want to keep politics out of it,, its in reguards to content, not labour, aka they don't want the story they are doing to be political, they want fun.
Well, I made it clear that the example was extreme, because I wasn't inviting a direct comparison in that sense. The point was simply to illustrate the commonplace corporate attitude of "Let's focus on the nice outcomes, and let's dismiss the moral elephant in the room as 'politics'."
Having said that, I think that the case could be made that the comparison may differ by degree, but not by nature. Malaysia's flogging practices are classified by Amnesty International as "the widespread use of torture", and LGBT rights are non-existent. By investing there, one is almost certainly benefiting from cheaper labour, and who knows how many people one is employing are having to live secret lives on pain of being brutalised.