Business discussion question

An American executive find that a foreign subsidiary of the firm he works for in a less developed country has in its employ a 12-year-old girl to work on the factory floor, in violation of the company’s prohibition on child labor. He tells the local manager to replace the child and tell her to go back to school. The local manager tell the American executive that the child is an orphan with no other means of support, and she will probably become a street child or be forced into prostitution of she is denied work. Apparently, this is a common problem in that country.

1. What should the American executive do?
2. How do you think companies such as The Gap can get Americans to pay more and would you be a consumer willing to pay more?