ETHICAL DILEMMA Following your analysis of the proposed credit policy, John Davis, Chief Operating Officer of Stevens Accessory Co., suggested that the company outsource its production to Latin America. He has conducted extensive research on the costs involved in such a move. His research indicates that the company could reduce operating costs to a level that would not only match, but has the potential to exceed, the incremental profit changes due to the proposed change in credit policy. He contends that the company is at a cross roads for production. Currently, Stevens has plant capacity to support a 15% growth in sales. He suggests outsourcing immediately which will lower costs and will provide a greater opportunity for growth in sales beyond the current plant's capacity. Such a move will result in layoffs of a majority of the company's manufacturing labor force. It will also render the investment the company made in its plant and equipment obsolete. Faced with the choice between easing credit policy and outsourcing the manufacturing of Stevens' products, identify which choice you would recommend. Explain and justify your decision. If the company were publicly-traded (its stock was traded on an exchange rather than being owned by the Stevens couple), would your decision be different? Why, or why not? Finally, think about your Christian values. If you desire your decision making to reflect the characteristics of God. Which characteristics are important to you? How would those characteristics impact your decision making?