To improve the performance of the organization it is necessary to manage the knowledge that is available. The use of human knowledge and potential can greatly contribute to the improvement of the organization. The most efficient operation of the organization itself requires the use of information in all forms - from collecting it to transferring and using it. Intellectual capital also known as knowledge is the main and the most important resource in organizations. It also requires constant education and development of skills and abilities. The development potentials leads to the improvement of the work of employees, which benefits both the employee and the organization itself, as it increases competitive power in the market. Knowledge management - maximizing the use of resources also known as intellectual capital. During knowledge management, it is important to achieve knowledge generation, knowledge codification, knowledge transfer and knowledge usage in organizations. It can be concluded that the goal of every organization is to transform intangible knowledge into material knowledge. Management is the main driver of organization and potential management, directing people and their potentials towards the goal. A manager in an institution or organization must be both advisor and associate and a supervisor and an executor. Business ethics can be broadly and narrowly linked. Ethics is controlling which behavior is right and which is wrong for the organizations. In the business world, ethics is tied to a particular profession and determines the ethical behavior of employees within that same profession.