CORPORATE GOVERNANCE IN FORESTRY

Corporate governance is a key element in improving economic efficiency and growth, and in increasing investors' confidence. It provides a structure through which company objectives are set, the means for achieving the goals and methods of monitoring results. Corporate governance provides a framework for managing and monitoring companies. Subsequently, it can be said that corporate governance is one of the key elements in improving economic efficiency and market economy. The European model of corporate governance finds its application in the EU and all other countries which harmonize their legislation with EU directives regulating corporate governance and with the OECD recommendations relating to corporate governance. The issue of corporate governance in Croatia is imposed simultaneously with the privatization and institution building of market economy. As a result of privatization, there is a large number of small shareholders. Croatian Forests Ltd established a European (two stage) model of management and control functions on the principles of two-tier corporate governance structure where the functions of management and leadership are strictly separated and contained in the management and supervisory board. Earlier analysis of the management structure of the company Croatian Forests Ltd indicated the need for changes in certain segments of the action. This paper presents a study of corporate culture in the company Croatian Forests Ltd, and proposes changes in its organization.