Introduction

Modello 231, or Model 231, is a unique framework in the Italian legal system. It refers to the organizational, management, and control model provided by the Italian Legislative Decree no. 231/2001. This decree introduced corporate liability for certain types of crimes committed in the interest or to the advantage of companies.

What is Modello 231?

Modello 231 is a compliance program that companies can voluntarily adopt to prevent the commission of crimes by directors, executives, and employees. The model provides a detailed set of procedures and controls designed to prevent specific types of crimes listed in the Decree.

Why Adopt Modello 231?

Adopting Modello 231 can be beneficial for companies in several ways:

1. Exemption from Liability: If a crime is committed by a person in a senior position within the company, and the company has effectively implemented and diligently managed a Model 231 compliance program, the company could be exempt from liability.

2. Enhanced Corporate Image and Reputation: A company that adopts Model 231 demonstrates its commitment to ethical business practices, which can enhance its reputation among stakeholders, including customers, partners, and regulators.

3. Risk Management: The procedures and controls outlined in Model 231 can help companies identify and manage risks, potentially preventing the commission of crimes.

4. Access to Public Funding and Concessions: Certain public funding and concessions are only available to companies that have adopted a Model 231 compliance program.

Conclusion

While adopting Modello 231 is not mandatory, it offers significant benefits. It serves as a proactive measure to prevent corporate crimes, protect the company’s reputation, manage risks, and access public benefits. Companies operating in Italy should consider implementing this model as part of their broader risk management and compliance strategies.