What is a "business policy?"All things needed under this topic.

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Ashley Kannan eNotes educator| Certified Educator

A business policy is the collection of general written and unwritten practices that are established in a company (http://www.smbtn.com/smallbusinessdictionary/#b).  The idea of a business policy embraces virtually every aspect of a business.  It can articulate the vision of the company, or mission statement, identify the structure of the organization, and even state the technical and minute details of a business culture such as starting/ ending times, or dress code.  A business policy is needed to ensure that clear communication is shared through and by everyone in an organization.  A clear business policy allows management to not only articulate its vision to its workers or subordinates, but also helps chart the company's growth and successes in the future.  Management needs a clear set of criteria of how to proceed in matters of competition, expansion, means to stimulate growth, as well as balancing its internal structure. A business policy is what allows management to have that external set of criteria and standards which guide such decision making.  Business policies might be altered or modified over time as situations and contexts warrant.

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