Whilst it is certainly true that in the past, Nike et al have had real problems with child labour and, and have indulged in some pretty questionable labour practices, it is also fair to say that a lot of the criticism of them has not moved on either. Many of the facts touted about some of the working conditions are out of date, as Keiran found, and there is also the issue that Nike in particular tends to be targeted by NGO's looking to score points off the biggest name out there. As Keiran and M62 Steve both point out, there are a lot of smaller manufacturers have got away with some equally questionable practices because they haven't been targeted because it doesn't make such good headlines.
Whilst Nike (looking at them in particular, as they seem to be the main source of irritation for most people) still have a long way to go, they really have made great strides in the last couple of years. In fact, in 2005 they took the very bold step of publishing a complete list of all the factories that they source from, so that anyone who wants to go and check them out is able to. This really is quite a big step, and one that no other company had done.
Large companies have also suffered because a lot of the manufacturing they do is actually outsourced to other companies, often local ones, who do not have codes of conduct regarding labour practices etc. Which raises the question of how far down a supply chain an individual company's responsibility goes. Whilst in the past this has been used as a convenient shield (think Coca-Cola) for bad practices, the complexities of modern supply chains make being 100% sure of good practice in all operations almost impossible. If you don't believe me, there were suggestions that some of the Make Poverty History wristbands had been made in factories with very questionable labour practices....oh the irony!
Anyway, companies are now working much more cleverly with local people to improve standards in factories etc. For example, a group of international companies, together with one of the Prince of Wales Charities and the Vietnamese government have been working together for the last 6 years in Vietnam to improve health and safety conditions in factories there - check out http://www.vcci.com.vn/sub/vbli/default.htm
So yes, there is probably still a long way to go, but the picture is often not as black and white as some campaigners try to present it.
You can check out information on this sort of thing in the Good Shopping Guide, which includes lots of information on a wide variety of products. A good company is Howies, www.howies.co.uk - a small ethical but technical company based in Wales. Otherwise, why not drop a line to the big company that you like to buy kit from, telling them that you want them to be more ethical? Most websites have a feedback forum. And most big companies now produce annual corporate responsibility reports that will give you information about their policies and practices (although obviously these are mostly good-news stories, but some will tackle difficult issues).
Phew - sorry for the lecture. Its a really interesting, complex topic, and one that I've looked at through my work - hence the rant. But its great that people want to take these things into consideration when buying - that's what forces companies to change.