During a team$-$building event, a manager makes inappropriate jokes that offend employees from diverse backgrounds. Some employees feel uncomfortable reporting the incident due to fear of retaliation.

Question: How should the organization address this situation to promote diversity and inclusion?

A$.$ Ignore the incident to avoid potential conflicts in the team.

B$.$ Encourage affected employees to confront the manager directly.

C$.$ Establish a confidential reporting mechanism and conduct diversity training.

D$.$ Implement stricter policies to discourage employees from reporting incidents.