Criminal compliance in the agri-food industry
Corporate criminal liability in the agri-food industry
Following the reform of the Spanish Criminal Code introduced by Organic Law 5/2010 of 22 June, Spanish legislation recognises the criminal liability of legal persons in cases expressly provided for by law.
A company may be held criminally liable for offences committed in its name, on its behalf, and for its direct or indirect benefit by its legal representatives or by persons authorised to make decisions on its behalf and possessing powers of organisation and control. Likewise, the company may also be held liable for offences committed in the course of its activities by subordinates, where such offences result from a serious breach of the duties of supervision, monitoring and control.
In Judgment no. 89/2023 of the Spanish Supreme Court (STS 89/2023)—analysing the so-called Pescanova case—the Court defined the notion of direct or indirect benefit to the legal entity in the context of corporate criminal liability as:
“Any kind of advantage, even a mere expectation, or relating to aspects such as improved competitive positioning, etc., beneficial for the profit or even for the mere subsistence of the legal entity within which the offence of its representative, director or subordinate is committed.”
Accordingly, without prejudice to the penalties applicable to the individual perpetrator (for instance, a director or senior officer), the company itself may also be subject to specific criminal sanctions.
Criminal risks in the agri-food sector
The agri-food sector is particularly exposed to criminal risks arising from its business activities, including:
- Offences against public health: production and distribution of foodstuffs unfit for human consumption.
- Environmental offences: unlawful discharges, emissions, or improper waste management.
- Food fraud and misleading advertising: misuse of designations of origin, fraudulent labelling, or adulteration of products.
- Document forgery offences: related to health certificates, traceability documentation, or export controls.
Corporate criminal compliance programmes in the agri-food industry
Although the implementation of corporate criminal compliance programmes is not legally mandatory, their adoption may exempt or mitigate the organisation’s criminal liability. In a sector as highly regulated as the agri-food industry, this is particularly significant.
An effective compliance programme should include:
- A sector-specific criminal risk map, identifying critical processes such as production, distribution, sanitary control, and interactions with public authorities.
- Traceability and food safety protocols, fully integrated into the supply chain.
- Confidential whistleblowing channels for reporting irregularities.
- Specialised training for employees and senior management.
The agri-food industry in a new regulatory landscape
In this context, the agri-food industry is facing a new regulatory environment in which the implementation of corporate criminal compliance systems constitutes not only a legal safeguard, but also a competitive advantage.
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