Merely determining the importance of business ethics is not sufficient; a dynamic approach to this issue
also requires creating conditions for its application and improvement. Therefore, in this work the human resource
management’s practice has been analyzed as rather important for application and improvement of business
ethics in organizations. The attention which has been given to the role of human resource management in the improvement of ethics at the workplace is driven by some unacceptable changes in the
manner in which organizations manage their people thereby imposing a certain number of serious ethical issues. The
importance of research of this role is increased in cases of privatization of enterprises, their restructuring, merging
with other enterprises, downscaling, and outsourcing of operations, which have been shown to be an ethically
sensitive area of the Serbian organizations. The modern approach to human resource management
offers practical solutions to improve business ethics, as well as efficient methods and techniques, especially for
generic and developmental functions (selection, training and development, performance assessment, rewarding).
The application of these solutions directly affects the application of business ethics, its further generation and improve.