Legislative Decree No.231/2001

Criminal liability of cooperatives under Legislative Decree No. 231/2001

This Decree provides that, in the event of criminal offences, not only individual persons but also corporations and, therefore, cooperatives may be held liable. The following offences are punishable under Legislative Decree No. 231/2011:

Offences against public administration (corruption, embezzlement, misappropriation of public funds, etc.)
Offences in the field of corporate law
Offences related to the abuse of market-sensitive positions
Offences related to occupational safety and health protection, as well as the unlawful recruitment and exploitation of workers
Offences related to IT systems and the unlawful processing of data
Transnational offences, criminal associations, and mafia-type associations
Offences related to money laundering, self-laundering, receiving stolen goods, and the use of funds of unlawful origin
Offences related to counterfeiting currency, as well as the falsification of trademarks, distinctive signs of intellectual creations, or industrial products
Offences committed for terrorist purposes or with the aim of subverting the democratic order
Offences against the individual personality of persons (bullying, exploitation, child labour, etc.)
Offences against industry and trade
Offences involving infringement of copyright and authors’ rights
Offences involving inducement to make false statements or to withhold statements before a judicial authority
Environmental offences
Offences related to immigration legislation
Offences related to racism and xenophobia
Fraud in sports competitions, illegal gambling or betting, and games of chance played using prohibited devices
Tax offences
Penalties in the event of one of the above-mentioned offences can only be avoided if a specific organisational model is adopted and approved, and if an independent supervisory body is appointed to monitor compliance with the model.

Milchhof Sterzing has already implemented both. The Code of Ethics and the organisational model form the basis for protecting the cooperative from penalties under Legislative Decree No. 231/2001. The model has been updated on the basis of various legislative changes. In particular, it proved necessary to amend and supplement the chapters of the organisational model relating to tax offences, Article 25 of Legislative Decree No. 231/01 (Chapter 18), and smuggling offences (Chapter 19, special section).

Code of Ethics and Organisational Model

Humanity and social commitment enabled Friedrich Wilhelm Raiffeisen, 150 years ago, to inspire fellow citizens to work together through self-help and personal responsibility within shared organisational structures. In this way, goals can be achieved that would be unattainable for individuals acting alone. All partners in the network are united by the cooperative business model and the fundamental values of Friedrich Wilhelm Raiffeisen, namely self-help, self-governance, self-responsibility, self-control, subsidiarity, and solidarity. In this spirit, Milchhof Sterzing has adopted a Code of Ethics which states that the activities and services of Milchhof Sterzing are aimed, directly or indirectly, at strengthening the performance capacity of its members and supporting their further development. Milchhof Sterzing also considers the adoption of an organisational model within the meaning of Legislative Decree No. 231 of 8 June 2001 to be appropriate and suitable for raising awareness among employees and other persons connected with the entity regarding correct and transparent conduct, and for preventing the commission of offences as provided for by the Decree.

Purpose and essential content of the organisational model

The organisational model of Milchhof Sterzing establishes a structured system of internal procedures and controls designed to prevent the commission of the offences provided for by the above-mentioned Decree. In particular, the model lists the individual areas of activity and the related risks with regard to criminal conduct. For each area, procedures and appropriate control measures are defined. In addition, a disciplinary system is introduced to sanction non-compliance with the measures set out in the organisational model.

How is the model structured? The model consists of a general part and a special part. The general part contains the fundamental principles of the model, the provisions concerning the supervisory body, and the disciplinary provisions. The special part defines the individual “risk areas” as well as the relevant rules of conduct in connection with the offences referred to in the Decree. Should any irregularities be identified, it is the duty of every employee, member, or any other person in contact with Milchhof Sterzing to report them immediately to the management, the Board of Directors, or the supervisory body responsible for monitoring compliance with the law.