Corporate criminal liability holds that a company — not just individual employees — can face criminal charges and prosecution when employees commit crimes in the course of doing their jobs. Courts apply two main theories: vicarious liability (the corporation is responsible for what employees do) and direct liability (company policies or management decisions caused or condoned the wrongdoing). In the United States, corporations can be convicted of felonies, fined, and placed on probation. Foreign corporations operating in U.S. waters or ports are subject to U.S. criminal jurisdiction even when headquartered abroad.