How do compliance hotlines support ethical behavior within organizations?

Compliance hotlines play a critical role in fostering ethical behavior within organizations by providing a safe and confidential mechanism for employees to report any wrongdoing or unethical conduct. This system encourages transparency and accountability within the workplace, as employees feel empowered to speak up without fear of retaliation or negative repercussions.

When employees know they have a reliable channel to express concerns or report misconduct, it promotes a culture of integrity and respect. By actively encouraging reporting through compliance hotlines, organizations can address issues promptly, investigate allegations appropriately, and ultimately uphold ethical standards.

In contrast, the other options do not effectively contribute to supporting ethical behavior. Discouraging participation in activities might lead to a lack of engagement and could overshadow ethical considerations. Providing awards for outstanding performance might motivate individuals but does not inherently create an avenue for reporting unethical behavior. Implementing casual dress codes, while perhaps beneficial for morale, does not impact the ethical framework or reporting mechanisms within the organization. Thus, the role of compliance hotlines in promoting ethical conduct is pivotal and well-articulated in option C.