Also businesses are not people. People may not do illegal things "just because they are illegal" or because they want to be "good" (e.g. I agree that we should not litter, I wouldn't even need a regulation for that).
Businesses are profit-maximising machines. If it it profitable to litter, a business will do it. The framework in which businesses maximise is set by regulations, which represent what society wants. That's how capitalism works.
The limit of capitalism is when businesses are more powerful than the entities in charge of enforcing the regulations. If "enforcing a regulation" means having lawyers work on it, but the businesses themselves have orders of magnitudes more lawyers trying to prevent those entities from doing their jobs, then we have a problem. That's a limit of capitalism, IMO.