You can certainly choose to run a business that breaks even on purpose. I don’t deny some people derive more value or satisfaction from having their employees earn a bit more and their costumers have slightly cheaper goods than from being able to accumulate more capital and wealth.
The business that are more profitable will be able to grow more and be able to provide those services and goods to more people adding value to their lives.
My understanding of capitalism is not incorrect. It’s really not complicated. It boils down to a system that respects property rights, which incentivizes people to acquire capital for the purpose of producing higher valued goods and services. The capital will naturally flow to whoever can use it best and manage to keep and increase it.
What your saying is no different to a business owner that takes the profits and donates them to charity.
Employees voluntarily enter into a contract with the employer, so no they are not getting stolen from. They are more than able to negotiate higher pay. And customers voluntarily pay for the goods snd services, so unless the goods and services are falsely marketed no one is getting ripped off. The reason they get paid a fixed salary in most cases is because they are not taking any of the risk the entrepreneur is taking. They get paid whether sales are good or not. The owner takes the risk so he enjoys the upside if the business is profitable or bears the burden of going out of business.
You would greatly benefit from reading any Austrian economics books. I would personally recommend Principles of Economics by Saifedean. Happy to send you a free pdf.