What is the 231 Organizational Model?

Similar to other management systems, it is a set of rules and principles, contained in protocols and procedures, that formally describe the activities to be performed (and the principles of conduct that govern them) for the management of the entity’s affairs. These rules must address the decision-making processes governing the various operations subject to the risk of crime (e.g., with regard to corruption, procurement, and payments); Legislative Decree 231/01 requires that, at a minimum, financial flows be monitored. Specifically, these are rules and principles that reflect good corporate management. Formalizing these rules not only allows the required proof to be provided to avoid sanctions, but also promotes orderly and more easily verifiable management, thus making it more effective and efficient.

These rules and principles are contained in protocols that “govern” the relevant processes, designed to prevent crimes that could potentially be brought to light. The Model must then be completed with a disciplinary system, based on the applied employment contract, which sanctions the sanctions of the rules adopted by the institution.

Model 231 provides that companies, associations, foundations, and all entities may also be subject to criminal proceedings and subject to heavy fines, confiscation of profits from illicit activities, and interdictory measures such as publication in newspapers, a ban on dealing with public administrations, and even administration when directors, including de facto directors, or persons subject to their power (such as employees, agents, representatives, and independent contractors) commit one of the crimes listed in the decree itself, unless the entity can prove:

• Having adopted an Organization, Management, and Control Model adequate for the prevention of crimes;
• Actual compliance with the provisions of the Model is subject to the supervision of a body with independent powers of initiative and control, also responsible for suggesting any necessary updates to the Model itself.

Interdictory sanctions can be applied as a precautionary measure during investigations, just as confiscation can be preceded, during the investigation, by the seizure of funds deemed equivalent to the proceeds of the alleged crime. Therefore, the risk we want to prevent is that certain crimes could be wrongly charged, at least hypothetically.

It’s essential to rely on specialists with a broad market vision and integrated field expertise, such as the G&A Team, which supports clients in the adoption, implementation, and deployment of the Administrative Responsibility Management System.

Why should a small company have an organizational, management, and control model?

Because companies also run the risk of encountering legal incidents and having to answer for their actions before the judicial authorities. Legislative Decree 231/2001 imposes heavy penalties on companies and gives the judicial authorities the power to seize, even during the investigation phase, the profits of activities deemed unlawful under the same decree. The existence of a Model and a Supervisory Body help protect against this risk.

Because public administrations can require the adoption of a Model to grant accreditations or contracts.

Because adopting a Model promotes the organization’s good reputation.

Because by adopting an adequate Model (and a valid Supervisory Body), I can also provide the Company with a good and efficient organization, regulate and monitor decision-making processes and financial flows, for aspects that are not included in a normal quality management system or standard management control.