I have heard even human rights groups have qualms about going after retailers running (or more often doing business with contractors who run) sweatshops because the alternative may be to lose the job altogether and end up worse off. In China crappy wages can actually be good wages, though the conditions are unconscionable by our standards, the laborers choose the jobs intelligently over the alternatives.
If we hold the company (e.g., Nike) accountable, the company may, instead of correcting the problem, which again is probably with a contractor not a directly owned factory, switch to a supplier possibly in another country where labor standards are adequate. Again, the victims lose their jobs.
I'm not trying to rationalize the cheap shoes from sweatshops, just describe unintentional consequences I don't like, either. The host country -- all of them -- stepping up regulation of all companies would work, but it's not going to happen anytime soon in, say, China.
So what to do. No, nothing is not the answer, but the answer can be tough even for a well-meaning company, if there are any of those left. Certainly some of them do better jobs than others.
Apple recently revealed finding children and excessive (60+/7 days) hours in unidentified Asian contract factories. And so it ... terminated the contract. OK, good, noble even. And the workers did what?
(Apple had similar problems in 2008 and 2006, too.)