Block and Suspend buttons can be turned off for user profile pages, the member directory, or both. Simply navigate to the relevant settings page and tick the pages you do not want to display those buttons on.
The report buttons can also be disabled via the Report Settings page, although in this case, you are turning off the buttons for each of the reportable activity types.
Does disabling the buttons disable the functions too?
No. Disabling the button only removes the ability for your users or administrators to Block, Suspend or Report other users. You cannot turn off the actual technology as that would create problems where users have already been blocked, suspended or reported.