parents can be held criminally liable for their children’s actions
It's a pretty limited liability, as can be seen in a lot of incidents (e.g. mass shootings). You have to prove a pretty high standard of negligence for a parent to be responsible for their kids' actions.
The same should be true for anyone else as well, if the C-suite is unaware that something negligent or illegal was going on two levels below, they shouldn't be held liable for that. You should only be liable for a crime that you are aware of, or should have been aware of if you were doing your due diligence. But yes, in many cases, the C-suites should be held to task here.