Most free-market people are not incapable of seeing all the unsavory things private corporations do, they just disagree with the solution, contending that the State is often ineffective and regularly makes things worse, by protecting those companies from litigation (a cornerstone of most free-market theories) and preventing property rights that would incentivize people to defend the lakes and sea.

There are also many anarcho-socialist branches, which obviously see plenty of wrong with the State, preferring to do away with it; and even among the statist, many would tell you that the current capitalist states must be done away to bring a real solution.

After all, it was Marx who wrote "The existence of the state is inseparable from the existence of slavery".