Under what conditions can an organization be held liable for an employee's criminal acts?

An organization can be held liable for an employee's criminal acts when those acts are committed within the scope of their employment and for the benefit of the organization. This principle is rooted in the legal doctrines of vicarious liability, which hold an employer responsible for the actions of employees performed in the course of their work duties. If an employee engages in illegal activities that are related to their job responsibilities and intended to benefit the organization, the organization can face legal consequences as a result of those actions.

For instance, if an employee embezzles funds while handling transactions for the company, the organization may be held liable because the act was done in connection with their work and purportedly for the company's benefit. In contrast, if the acts do not relate to their employment or occur during personal time, liability for the organization would typically not apply, as those actions are outside the scope of their job responsibilities.