One of the best ethics enforcement tools is
monitoring customer complaints.
monitoring employees’ online activity like email and internet search.
a whistleblower hotline.
The Correct Answer and Explanation is:
Correct Answer: A whistleblower hotline.
Explanation
A whistleblower hotline is widely considered one of the most effective tools for enforcing business ethics. It provides a confidential and often anonymous channel through which employees, customers, suppliers, or other stakeholders can report unethical, illegal, or suspicious activities. This mechanism fosters a culture of accountability and transparency by empowering individuals to speak up without fear of retaliation.
Unlike other tools like monitoring customer complaints or employee internet activity, a whistleblower hotline directly targets internal misconduct. While customer complaints may indicate ethical issues, they are usually external and reactive — meaning they alert the company only after harm has occurred. Monitoring employees’ online behavior may raise privacy concerns and create a culture of surveillance, potentially damaging trust without necessarily detecting deeper ethical violations.
In contrast, whistleblower hotlines proactively support ethical compliance by identifying problems early, allowing organizations to address them before they escalate into legal or reputational crises. They can uncover issues such as fraud, harassment, discrimination, financial misstatements, or safety violations — areas often hidden from standard oversight.
Furthermore, regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) and global frameworks like the Sarbanes-Oxley Act endorse whistleblower mechanisms as part of good corporate governance. Many high-profile corporate scandals could have been mitigated or avoided if effective whistleblower systems had been in place and taken seriously.
To be successful, however, a whistleblower hotline must be part of a broader ethical culture that includes leadership support, training, follow-up investigations, and protection from retaliation. Without these, the hotline risks becoming a symbolic tool rather than a functional one.
In summary, a whistleblower hotline is a powerful ethics enforcement tool because it allows internal issues to surface early, reinforces a speak-up culture, and serves as a frontline defense against ethical breaches.
