Directions of internal employee movements, as promotions, retrogressions, relocations and dismissals also
may be efficient tools in improvement of the enterprise’s ethical system, provided they are based on clear,
understandable, righteous and reasonable criterions. The creation of fair and correct relationship with the
employees has to be part of the human resource management package that leads to higher ethic of the
enterprise. Respecting mutual interests between the employee and the employer, based on correct rules of the
game prescribed by the government as a social partner and creating balance instead of an exploitive relation, provides
with a framework to develop respect and commitment to the business goals, at the same time enabling the
achievement of individual goals. Without a fair relationship, mutual respect, self-responsibility,
participation and the necessary level of freedom in performing work, there is no business ethics. It is
Considering the general ambient and culture in transitional conditions, anyone can clearly see that the
implementation of ethical behaviour in Serbian enterprises is a critical issue. As to the influence of human resource
management practice on application and improvement of business ethics in Serbian enterprises, we are in the stage of
acknowledgement of its importance; unfortunately, it is impossible to improve business ethics based on exploitation, control, coercing and contempt.