@serenesurface-- Why don't you talk to an administrator about it? I'm not sure whether that type of activity is ethical or not. But if a student has concerns then the university ought to look into it and take action if required.
Of course, in addition to teaching students the basics of ethics, universities have to be ethical institutions as well. Campus ethics can be a little more complicated because administrators may not always be aware of every single activity that takes place. This is not an issue in most universities, but ragging, for example is a common problem in some. In some cases, ragging among students can be very serious and even unethical. So the university has to do its best to make sure that rules are followed and that no one is ever harmed or treated unethically on campus.