The US Sentencing Guidelines Use a "Carrot and Stick" Approach

The US Sentencing Guidelines use a "carrot and stick" approach to managing corporate crime. What is meant by the use of "carrot" and "stick"?

A) The carrot dangles at the end of the stick as an incentive for organizations to continue to behave ethically.
B) The carrot refers to the guidelines as "food for thought" and the stick refers to the punishment if the guidelines are not followed.
C) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the punishment if the guidelines are not followed.
D) None of these.