PvP Frontier created PVP gankers. By design.

[antiriad]

Yeah, this one REALLY doesn't work. So many ways it can be abused. It would create far more issue than "ganking" itself currently does.

For clarity, this is a bad idea, because:

• No one should ever be guilty by association - this is FUNDAMENTAL
• a player could have a disagreement with their squadron, and use this to cause them issues prior to leaving
• existing "gank" squadrons could easily use this to make money, as described above by @Screemonster
• "gank" squadrons literally wouldn't care about another bounty / more noteriety - they don't care now
• mistakes happen - as has previously been discussed, the game doesn't differentiate between NPCs and CMDRs, so if one accidentally destroys an NPC ship, one's entire squadron gets punished?
• in a consensual PVP fight, one player forgets to turn "report crimes" off and gets a bounty, again the whole squadron suffers

Those are just what I've come up with off the top of my head and from other posts here. No, it's a terrible idea. Akin to WWII POW camps, where if one prisoner transgressed, all the prisoners were punished.

This 100% wouldn't stop (or even lessen) ganking - it would only serve to punish players for mistakes (and more importantly, the mistakes of others)