Not so long ago it was Apple and Microsoft (among others) who were the up-and-comers challenging the overwhelming market dominance of IBM and HP. They didn't lobby government for leverage or laws, they went ahead with their product combined with great marketing and business approach and did extremely well. It is improbable but not impossible.
I see a lot of people (not you) advocating the elimination of capitalism in the comments of this article; it's important to think deeply and consider the negative consequences of eliminating private property and contract laws from the economy, but that is a major discussion on it's own.
I believe that ethical and moral issues in corporations are a symptom of a cultural and philosophical problem, and that what we need is a cultural and philosophical revolution - outside of government intervention.
One of the benefits of proper capitalism is that you are free to set up your own business, hire only US workers, and advertise that you do so. You may even be able to produce at lower cost than those companies you resent so much. You are also free to "boycott companies who outsource."
Ethics and morality are absolutely compatible with capitalism. The issue with ethics and morality in business is a cultural and philosophical one; not an economic one.
And please read up on the definition of capitalism: http://dictionary.reference.com/browse/capitalism "An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market."
Also: "An economic and political system characterized by a free market for goods and services and private control of production and consumption. (Compare socialism and communism.)"
Mommy, what happens to your files when you die?