All stakeholders in an organisation are responsible for creating an ethical organisation. Leaders set the tone by acting ethically and articulating ethical values in the organisation. The HR department is responsible for ensuring that systems and processes are established to improve, maintain and monitor ethics, while all organisational members must adhere to the highest ethical principles. Organisations that are perceived as ethical draw and retain discerning employees and customers. With reference to this: 4.2.1 Discuss why ethics is a crucial aspect of effective leadership. (8) 4.2.2 Discuss the role of HR in creating an ethical organisation