This paper deals with the ethical aspect of public relations in Croatia. The aim of the paper is to research the ethical frameworks and challenges of public relations and the perception of public relations practitioners about the state of public relations ethics in Croatia. Through the theoretical part of the work, the topic is introduced by presenting general information about public relations and ethics in business. Then the work of the Croatian Public Relations Association and its Code of Ethics are presented, described and analyzed, because they set guidelines and rules as a support for public relations practitioners in Croatia. The theoretical part is rounded off with the topic of the new trend of using generative artificial intelligence in public relations, by using the example of the ChatGPT phenomenon. The survey, which represents the central part of the paper, shows three main things - how familiar the respondents are with the CPRA's Code of Ethics, what they think about its applicability in practice, and how they see the future of public relations with regard to the trend of using artificial intelligence. The method used in the research is a quantitative survey method. The sample of respondents is intentional, whereby we examined experts, and public relations practitioners accessed the survey via the Public Relations Facebook group in the period from April 4, 2023 to May 9, 2023. The main research findings of the work are that the state of ethics of public relations practice in Croatia is at a satisfactory level. The research showed that the number of CPRA's members should be increased, but even now among the members there is a need for additional education on the topic of ethics, and the opinion that the sanctions in the Code of Ethics are not clear enough. It also lacks topics such as the use of artificial intelligence. However, artificial intelligence is in the initial phase in Croatian public relations, and the ethicality of its use is questionable.