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Definition of Company Policies

Society is based on policies. There are policies for driving a car, policies for filing your taxes and policies for registering your child for soccer. Companies have policies, too, and these policies are put into place to maintain order and consistency in the workplace.


Policies are rules. According to BNET, a policy is a statement that defines the behavioural expectations of employees, or sets a standard for how a procedure should be followed across the organisation.


Company policies give employees guidance about what is expected of them. They define things such as what types of clothes are appropriate and inappropriate and what behaviours are acceptable and unacceptable. The purpose of company policies is to give employees the information they need to succeed within the organisation.


Policies give employees a clear understanding of their role within the organisation. Employers benefit from having policies, too, because they serve as soft agreements (not formal contracts) with employees, so if employees breach a policy, there is documentation to support the employer’s reprimands.


Company policies establish consistency and standardisation. A company will be more organised and systematic when it has policies in place, which allows room for more productivity.


Policies are subject to change. When policies are amended the new versions of them must be released to employees so that they are up to date with the new standards.