Corporate policies and procedures (2024)

Article highlights

  • Difference between policies and procedures.
  • Examples of corporate policies and procedures you should have.
  • Implementing and tracking policies and procedures.

Why do you need corporatepolicies and procedures? They serve several purposes, with the overarching goal of protecting employees’ rights and safeguarding the company’s business interests.

A corporate policy spotlights the “why” behind employees’ jobs and defines how to measure success. It gives some guiding principles for decisions and actions.

A company procedure ensures employees know specifically how to carry out the policy, which keeps the organization running smoothly.

Together, corporate policies and procedures provide guidance; ensure compliance with federal, state, and local laws; decrease liability; streamline operations; promote a safe work environment; and encourage consistency.

Difference between policies and procedures

In a nutshell, a policy explains what to do and why, while a procedure explains how to do it.

Think of a policy as “the big picture,” serving as a guideline and setting the direction for your company. It conveys your company’s culture, values, and philosophy. It sets expectations for both internal audiences (employees) and external audiences (customers and community).

A procedure, on the other hand, describes the specific steps to take to go in the direction the policy sets forth. It might include a checklist of actions to take or a step-by-step process to follow, including approval that might be needed or reporting instructions.

It’s similar to the difference between a goal and a task, with the goal outlining the end result you’re aiming for and the task defining the specific action you need to take to meet that goal.

Learn more about the difference between policies and procedures here.

Examples of corporate policies and procedures you should have

What policies and procedures should a company have? It depends, as some of the corporate policies and procedures your business needs will depend on factors such as your company size and your industry.

But generally speaking, these are some common company policies and procedures you should put in writing.

Learn more about policies your organization needs to have in writing here.

Code of conduct

While you don’t want to overwhelm employees with volumes of rules, you do want to lay the groundwork for an ethical, professional atmosphere tied to compliance.

The goal is to create a safe environment and enjoyable work culture that makes people feel welcome and comfortable. This goes for employees, vendors, visitors, and customers – basically anyone your business deals with internally or externally.

A good code of conduct policy should provide a roadmap for how you want your employees to behave.

It should address specifics such as dress code, ethics, safety, Internet usage, bullying, harassment, etc. Include both acceptable and unacceptable behaviors so there’s no ambiguity on what your business will and will not tolerate.

Finally, clearly spell out the consequence of failing to meet expectations, including warnings, disciplinary actions, and, if warranted, termination.

Attendance/vacation/time off policy

You might want to create one umbrella HR policy that covers several related employee benefits areas. Or you can choose to break each down into a separate company policy, depending on the amount of detail you need to provide.

Employees need to clearly understand their work schedules and benefits as they relate to holidays, vacation, sick days, meals and breaks, maternity leave, and similar benefits.

Remember, they need to know both the what (policy) and the how (procedure). Your corporate policy, for instance, might provide five vacation days a year.

Your procedure should outline how employees request time off – whom do they ask, what online or paper request do they need to complete, and how far in advance do they put in the request for time off?

Also, you should clearly delineate need-to-know details, such as the frequency, duration, and limitations of time off, as well as whether it’s paid or unpaid.

And don’t leave employees guessing policy details such as what happens with unused vacation. (For example, is it use-it-or-lose-it or does it rollover?)

Finally, outline the consequences for not adhering to your corporate policies and procedures. Will employees face disciplinary action if they take off more than the allowable number of days in a month?

A written company policy makes expectations – and consequences – clear.

Corporate policies and procedures (1)

Equal opportunity and non-discrimination policies

Again, you might lump these into one corporate policy, as they all address nuanced versions of inclusion. Or you can create a separate company policy for each area.

Regardless of your corporate policy structure, spell out how you comply with the law. Most countries mandate being an equal opportunity employer.

In the U.S., theEqual Employment Opportunity Commissionwill enforce laws prohibiting discrimination on the basis race, color, religion, sex, or national origin. These laws are designed to promote equal opportunity in the workplace – fair treatment regardless of your background.

But you should do more than just follow the letter of the law. You should strive to foster a workplace that values individuals for who they are.

Besides creating an inclusive work environment, your business benefits as well. In fact,research showsthat “companies with more diverse top teams were also top financial performers.” An inclusive workforce also allows you to tap into a larger pool of candidates when hiring.

Diversity helps to offer a variety of perspectives andboosts group decision-making.

You might consider establishing a company policy that goes beyond federal law requirements. Your corporate policies speak volumes about your company’s values, so it pays to outline your stance on diversity and inclusion in the workplace.

The key is to create a policy that welcomes people of all backgrounds. Employees want to feel comfortable in their own skin at work without fear of judgment.

A soliddiversity training programcan go a long way in teaching cultural awareness and explaining how to treat people of different backgrounds respectfully.

Workplace safety

You want your employees to feel safe while doing their jobs. Look to relevant local, state, and federal laws to guide your workplace safety policies and procedures.

Thus, should outline what safe workplace behavior looks like, how to maintain a safe work environment, how to use safety equipment, and what to do in an emergency.

For example, you might require workers to immediately report on-the-job accidents and injuries. Depending on your business and industry, you might need to follow Occupational Safety and Health Act (OSHA) regulations, especially if certain workplace hazards exist at your company.

Alcohol, drug-free workplace, smoking, cannabis policies

Another common corporate policy to have prohibits substances such as alcohol, drugs, and tobacco products. Some companies don’t allow them onsite at all, during business hours, or even during business events.

How will you treat employees who smoke or vape? Will you designate a completely smoke-free workplace (including the exterior grounds) or implement a no-smoking policy only inside your building?

What will your company policy be if you’re in a state where marijuana is now legal? How will you handle incidents involving alcohol at company functions? These are all questions your company policy should address.

Corporate policies and procedures (2)

Whistleblower policy

When employees see wrongdoing within your company (such as stealing, lying, or fraud), they should be able to report it without getting in trouble. How will your business handle this whistleblower?

According to theSociety for Human Resource Management (SHRM), “whistleblower protections are provided in two important areas – confidentiality and against retaliation.”

The whistleblower policy should outline the steps employees should take to report such an incident and the appropriate person in management employees should tell.

Employees should be able to share this information in a confidential setting and, if possible, without their identity being disclosed to other parties. Whistleblowers should also know that your company will not retaliate against them (i.e., demote them, fire them, cut their pay) if they bring to light any company wrongdoing.

Anti-harassment policy

Workplace harassment shouldn’t be ignored, as it creates an unsafe and unproductive work environment. Plus, it puts your business at risk of legal actions and scandals that could ruin your hard-won reputation.

Having a company policy in place sets the tone for employees that you won’t tolerate harassment in your organization.

It should outline both appropriate and inappropriate behavior and clearly explain the ramifications of not adhering to your policy.

Again, a goodtraining programgoes a long way in communicating how to handle this delicate topic in a way that fosters a professional, respectful work environment.

Privacy policy

Employees deserve a right to privacy, but this can be a tricky issue, especially where technology is concerned.

Your privacy policy should address how you collect, store, and disclose personal information such as employees’ names, home addresses, and social security numbers.

It might also cover your employees’ right to privacy in voicemail messages and phone conversations, as well as their personal items such as a briefcase, backpack, or purse. Using technology at work, however, is another story.

Company emails and internet usage, for example, might be monitored.

Cybersecurity policy

Employees sometimes introduce risks and vulnerabilities into your company, often unintentionally.

But when you create acybersecurity policy, you’ll equip them with the knowledge they need to help reduce the risks introduced by human error. Outline policies and procedures that address common issues such as phishing attacks, insufficient password security, and poor access controls around sensitive information.

Acceptable use policy

To ensure your employees (and visitors) don’t misuse company computers or the internet, you need an up-to-dateacceptable use policy(AUP).

It should outline how people can use a website, network, or internet service.

For example, it might prohibit uploading or downloading certain types of files, or harassing others via company email, or leaking insider information.

Social media policy

Employees might want to share their workday moments on social media platforms like Twitter, Facebook, and Instagram.

But should they?

Your policy should address whether your company prohibits accessing social media during work hours as well as what company information employees should and should not share online.

Bring your own device (BYOD) policy

Between cell phones, tablets, computers, and other electronic devices, our wired world means employees might bring their own device to work.

By creating abring-your-own-device (BYOD) policy, you provide ground rules for how and when employees can use their own technology to conduct company business and access company information.

Disciplinary action

What happens when employees break a rule or disregard a policy? A disciplinary policy should clearly outline what circ*mstances warrant an employee being disciplined (such as lying, safety issues or misconduct) as well as what disciplinary actions will be taken.

Creating a standardized process for handling employee problems provides you with a consistent approach for handling both serious and minor offenses. It also communicates to employees what your company will and will not tolerate.

You might need to seek legal advice to ensure your disciplinary policies and procedures are fair, appropriate, and legal.

Corporate policies and procedures (3)

Implementing and tracking policies and procedures

Writing corporate policies and procedures is only part of the equation. How do you store, distribute, and track all these crucial documents – especially since some policies will have legal implications?

Apolicy management softwarelike PowerDMS can help solve the problem.

It enables you to quickly and easily distribute the newly created policies to all employees, ensuring they have their own copy on file. Then take time to meet individually or in small groups (perhaps by department), allowing a chance for review and questions.

Finally, ask employees to sign off that they’ve received the new company policies and that they understand the expectations.

The reality of effective policy management is that it can be a hassle to stay on top of it all. Using our policy management software streamlines the process, saving you time, ensuring nothing falls through the cracks, and providing consistent communication.

Our automated alerts notify employees when they need to sign a policy or when it’s been revised. And our robust tracking takes the guesswork out of wondering if a policy has been signed. Plus, our software connects policies to relevant training, standards, and forms.

Using a policy management software allows you to focus on the big picture – fostering a safe, enjoyable environment where people want to show up for work every day. And it leaves the time-consuming, nitty-gritty implementation and tracking details to a robust solution that serves as your automation partner.

With effective corporate policies and procedures in place, you can rest assured knowing you’ve followed best practices in protecting both your workers’ rights and your company’s interests.

Corporate policies and procedures (2024)

FAQs

What are examples of policies and procedures? ›

Here are some examples of common workplace policies that could assist your workplace:
  • code of conduct.
  • recruitment policy.
  • internet and email policy.
  • mobile phone policy.
  • non-smoking policy.
  • drug and alcohol policy.
  • health and safety policy.
  • anti-discrimination and harassment policy.

What are the corporate policies? ›

A corporate policy spotlights the “why” behind employees' jobs and defines how to measure success. It gives some guiding principles for decisions and actions. A company procedure ensures employees know specifically how to carry out the policy, which keeps the organization running smoothly.

What are policies and procedures of a company? ›

Company policy documents are used to outline the internal company rules and workplace practices for persons working within and with the company (usually inclusive of independent contractors).

What are the top 3 policies of your current employer? ›

In this blog, we discuss the 10 top HR policies in India that every company should consider.
  1. Employment contract. ...
  2. Employee wages. ...
  3. Code of Conduct. ...
  4. Leave policy. ...
  5. Employee provident fund. ...
  6. Gratuity Policy. ...
  7. Paternity and maternity leave policy. ...
  8. Sexual harassment workplace policy.
24 Aug 2022

Why are company policies and procedures important? ›

Policies and procedures are an essential part of any organization. Together, policies and procedures provide a roadmap for day-to-day operations. They ensure compliance with laws and regulations, give guidance for decision-making, and streamline internal processes.

What are corporate procedures? ›

What Are Company Policies and Procedures? Policies and procedures in a company serve to define how employees are expected to behave and to detail the responsibilities of both management and employees. Company policies and procedures help to ensure that employees receive their legal and ethical entitlements.

What are some good company policies? ›

As you create, revise, or update your employee handbook, here are 10 workplace policies every business should have.
  • Anti-Harassment/Discrimination. ...
  • Social Media. ...
  • Workplace Safety. ...
  • Code of Conduct. ...
  • Conflict of Interest. ...
  • BYOD Policy. ...
  • Information Security. ...
  • Acceptable Use.
22 Dec 2020

What are some examples of policy? ›

Examples include government policies that impact spending for welfare, public education, highways, and public safety, or a professional organization's benefits plan.

What is the difference between a policy and a procedure? ›

Policies set some parameters for decision-making but leave room for flexibility. They show the “why” behind an action. Procedures, on the other hand, explain the “how.” They provide step-by-step instructions for specific routine tasks. They may even include a checklist or process steps to follow.

What are the 10 policies all companies should have? ›

Business critical policies and procedures are as follows.
  • Health and safety. Every business should be committed to offering a healthy and safe working environment for all employees and visitors. ...
  • Quality. ...
  • Environment. ...
  • Code of conduct. ...
  • Corporate social responsibility. ...
  • Employment. ...
  • Purchasing. ...
  • The Internet and E-mail.
10 Apr 2016

What are the 3 types of HR policies? ›

HR Policies – 6 Important Types: Originated, Appealed, Imposed, General, Specific and Written Policies and Implied Policies.

What should be in a 2022 employee handbook? ›

A great employee handbook should cover each of these key areas: Company background, culture, values, and mission statement. Terms of employment, including how to end employment. Workplace policies, including workplace safety and remote work policies.

What are 3 topics a company handbook covers? ›

9 Employee Handbook Topics You Need To Cover
  • Welcome Message. How do you communicate your values and mission to employees? ...
  • Your At-Will Relationship. ...
  • Equal Employment Opportunity. ...
  • Conduct. ...
  • Compensation & Performance. ...
  • Benefits & Leaves. ...
  • Health & Safety. ...
  • Workplace Guidelines.
19 Nov 2019

What are 5 essential topics that must be covered in an employee manual? ›

Every company's handbook is different, but they should all contain some basics.
  • Your Mission. ...
  • Everything Required by Law. ...
  • Paid and Unpaid Time-off Policies. ...
  • Pay and Promotions. ...
  • Benefits.
21 Dec 2018

What is the purpose of policies in the workplace? ›

Policies are important in a workplace as it helps reinforce and clarify the standards expected of employees and help employers manage staff more effectively as it defines what is acceptable and unacceptable in the workplace.

Who is responsible for policies and procedures in an organization? ›

Human resources professionals often play a role in developing and formalizing company policies and procedures, especially in larger small businesses. This is part of why HR directors often participate as part of the company executive management team in strategy and planning meetings.

How do you implement policies and procedures? ›

Step-by-Step: How to implement effective policies and procedures
  1. Step 1: Consultation. ...
  2. Step 2: Tailor the policy to your business. ...
  3. Step 3: Define obligations clearly – be specific! ...
  4. Step 4: Make the policy realistic. ...
  5. Step 5: Publicise the policies and procedures. ...
  6. Step 6: Train all employees in policies and procedures.

What are examples of procedures? ›

The definition of procedure is order of the steps to be taken to make something happen, or how something is done. An example of a procedure is cracking eggs into a bowl and beating them before scrambling them in a pan. A particular method for performing a task.

What policies do small businesses need? ›

The next top ten HR policies and procedures for small businesses are:
  • Equal Opportunities.
  • Sickness and leave of absence.
  • Flexible Working.
  • Training and Development.
  • Bullying and Harassment.
  • Code of conduct.
  • Internet and email.
  • Drug and Alcohol.

What are the types of policies in management? ›

Four types of policies include Public Policy, Organizational Policy, Functional Policy, and Specific Policy. Policy refers to a course of action proposed by an organization or individual.

What are some examples of policy? ›

Examples include government policies that impact spending for welfare, public education, highways, and public safety, or a professional organization's benefits plan.

What are five 5 things that could be included in a health and safety policy? ›

The policy should cover some, or all, of the following items:
  • Risk assessments.
  • Consultation with employees.
  • Maintaining plant and equipment.
  • Safe handling and use of substances.
  • Information, instruction and supervision.
  • Responsibility and delegation of authority.
  • Worker/staff training.
11 Nov 2016

What is an example of a procedure? ›

The definition of procedure is order of the steps to be taken to make something happen, or how something is done. An example of a procedure is cracking eggs into a bowl and beating them before scrambling them in a pan. A particular method for performing a task.

What are some examples of public policy? ›

Public Policy Issues and Groups
  • Abortion.
  • Affirmative action.
  • Air pollution.
  • Animal rights.
  • Assisted suicide and euthanasia.
  • Automobile safety.
  • Bullying.
  • Capital punishment (death penalty)

What are the most important company policies we should implement? ›

As you create, revise, or update your employee handbook, here are 10 workplace policies every business should have.
  • Anti-Harassment/Discrimination. ...
  • Social Media. ...
  • Workplace Safety. ...
  • Code of Conduct. ...
  • Conflict of Interest. ...
  • BYOD Policy. ...
  • Information Security. ...
  • Acceptable Use.
22 Dec 2020

What is the difference between a policy and a procedure? ›

Policies set some parameters for decision-making but leave room for flexibility. They show the “why” behind an action. Procedures, on the other hand, explain the “how.” They provide step-by-step instructions for specific routine tasks. They may even include a checklist or process steps to follow.

What is a workplace policy? ›

A workplace policy is a statement which outlines an organisation's practices and procedures concerning part of its business, which can cover everything from day-to-day operational matters to compliance with employment legislation.

What are 10 occupational health and safety procedures? ›

10 Workplace Health & Safety (WHS) Tips
  • Keep Fire Doors Shut.
  • Clear the Hallways.
  • Pick up Heavy Items the Right Way.
  • Make Note of Emergency Items.
  • Correct Your Posture.
  • Minimise Eye Fatigue.
  • Learn Emergency Procedures.
  • Don't Put Up With Harassment.
9 Nov 2018

What are the two types of workplace procedure mandatory? ›

Two Types of Training: Statutory and Mandatory

Key pieces of legislation here are the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999.

What are two types of workplace procedure? ›

2. Types of workplace training
  • workplace orientation.
  • fire safety and emergency procedures.
  • first aid.
  • health and safety (such as risk assessments or accident reporting procedure)
  • welfare facilities.
  • safe use of workplace tools, machinery, equipment.
  • risk assessments.
  • maintenance or storage of personal protective equipment.
3 Mar 2020

What are procedures in the workplace? ›

What is a workplace procedure? A workplace procedure directly relates to workplace policies. A procedure is a list of steps demonstrating how to implement a policy. Policies and procedures are used together to give employees a good understanding of company rules and values.

What is an example of a procedure in business? ›

While a process is a set of defined actions, a procedure is a set of instructions that are detailed in nature. For instance, onboarding a new employee in your organization is a process. It is focused on introducing the company to the new person and familiarizing them with company policies, culture, and teams.

What comes first process or procedure? ›

In a nutshell, the key difference between a process and a procedure is this: a process is a series of tasks and activities that produce an outcome. A procedure is a set of instructions for completing a single task or activity within a process.

What are the 3 public policies? ›

Public policy can be studied as producing three types of policies (distributive, regulatory and re-distributive) related with decision making process.

What are the 4 types of public policy? ›

Four types of policies include Public Policy, Organizational Policy, Functional Policy, and Specific Policy. Policy refers to a course of action proposed by an organization or individual.

What are the four public policies? ›

The four main types of public policy include regulatory policy, constituent policy, distributive policy, and redistributive policy. These four policy types differ in terms of what their goals are, and who they impact or benefit.

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