Among available options, our "individualist, capitalist, western society" is more or less ethical. No society is 100% ethical, with the millions who have died under collectivism & communism, I don't see how people can still conclude in 2009 that individualism is all bad. Not to go all Ayn Rand on you or anything, but individualism and self-interest can motivate an outcome that is ethical. Result matters more than intention.

And on that note:

Are you so certain? Presumably the economy is such that the families benefit from the additional income. Perhaps those children were starving before Nike moved a factory there. Would we be more ethical if we refused to bring industry to those areas so we could feel good about how ethical we are?

This isn't to say that capitalism is always ethical - it certainly isn't. No system is. I'm just saying you have to judge things in context. Americans didn't hesitate to have children work during our industrial revolution, and now that we have benefited from the fruits of that labor, we will sit in our big houses and refuse to tolerate other nations having *their* children work?

In my assessment, if Indonesians want their children to work whether or not Nike has a factory there, I do not see why it is unethical for Nike to have a factory there provided working conditions are safe, humane, and that the company pays a wage that is commensurate with what a worker can expect to receive in that economy.