Addressed to British companies doing business overseas, this briefing paper offers recommendations on practical steps to combat exploitative child labor while explaining why action without the provision of alternative incomes could drive children into higher risk areas of the informal economy. The paper explains that if sufficient resources are not available, then the interests of the children involved may be best served by encouraging employers to end exploitative practices without automatically discarding child workers. The paper recommends that development assistance be provided for alternative incomes and local capacity building; that the new ILO (International Labour Organization) convention be supported; and that effective codes of practice be promoted among British companies operating overseas and British overseas employers, including the government of the United Kingdom. The role of consumer education is dealt with entirely on pages 6-7. The rehabilitation and education of released children is dealt with briefly on pages 20-21. (JPB)