Fable III Preview
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The demo first showed an example with the main character scolding his daughter for wandering off, then lifting her up in his arms and throwing her up into the air to cheer her up. The next one was a bit sadistic, though. The main character grabbed a hobo and, instead of giving him some spare change, dragged him by the hand kicking and screaming to a factory where he was sold.
That said, there are a lot of factories in the latest rendition of Albion. The Evil King Logan lords over the land and enforces his rule with an iron grip. Ten children die laboring every day and poverty runs rampant. As the child of Fable II's hero, you have the ability to change things for the better... or worse. But that's nothing new.