The responsibility center is any internal organizational unit within a company that is managed by theperson responsible for its business activities. The responsibility centeris a part of the overall scope of corporate responsibility. By establishing such business center, more effective control of costs, revenues and profits, and developing market behaviour at lower levels of management are performed. With the concept of responsibility centres, there is also the notion of decentralization, which entails a series of measures. Decentralization enables organizations to make better use of the benefits of division of labour in a way that decisionmaking takes place at different places in the organization. Under the concept of decentralization of Hrvatske Šume Limited Liability Companyimplies the redistribution of powers, responsibilities and financial and other resources to the organizational units lower than the level of the Management Board. Businesses in the Hrvatske Šume Limited Liability Companyare of such nature that requires decentralized performance, but the fact is that certain business functions may need to be centralized if their ultimate goal is high efficiency.