Corporate policies are put in place to create order and standardization in the workplace. Policies help employees understand what is expected of them by their employers and what the rules of the organization are.
Major business policies cover employee standards, guidelines and expectations, benefits, work leave protocols and policies about conflicts of interest and ethics. There are also whistleblower policies, dress codes and policies for the occurrence of accidents and injuries.
Business policies protect companies from risk. For example, equal employment opportunity protection against discrimination and protection from sexual harassment policies ensure employee fairness and safety, while keeping the company in compliance with federal employment laws as regulated by the Equal Employment Opportunity Commission.
Corporate policies are beneficial to the company and its employees, but they also impact stakeholders and investors. Parties who have a vested interest in a company may want to know what the company values are and what types of ethical codes are in place. This information can be gathered from the business policies of the compnay. Businesses who do not have ethical codes may seem risky to outside investors; whereas companies with comprehensive policies appear safer.