Final answer:
The HR function in the organization is largely insulated from unethical behaviors.
Step-by-step explanation:
The correct statement in this case is: HR management must focus on clearly illegal behaviors within the firm and leave ethics up to the conscience of each individual manager.
HR management plays a crucial role in enforcing compliance with laws and regulations within an organization. While they may establish guidelines and policies to promote ethical behavior, ultimately it is up to each individual manager to make ethical decisions and behave in an ethical manner.
By focusing on clearly illegal behaviors, HR management can ensure that employees are acting within the bounds of the law and can address any violations effectively.