"Because capitalism does not have a social component."
The same is true about socialism in its strict form: one allows for individual property rights to private goods, and another for government's rights.
Democracy refers to the process of selection of a government.
"functions in the economic sphere,"
Also problematic: one speaks of a legal environment of an economy, not the other way around.
Can you name one dictatorship that allows free market
capitalism? Socialist countries control more than the
means of production: for example, Sweden and Denmark.