Policiesserve as essential tools within an organization to set clear expectations for behavior, actions, and decision-making.
* Primary Purpose:
* Establishclear expectations of conductfor employees, contractors, vendors, and other stakeholders.
* Provide guidance on acceptable behavior and operational standards across the organization.
* Significance:
* Policies align stakeholder actions with organizational values and objectives.
* They act as a foundation for procedures, controls, and compliance initiatives.
* Why Other Options Are Incorrect:
* B: While policies support compliance, their scope extends beyond regulatory requirements.
* C: Policies do not eliminate the need for procedures; they complement them.
* D: Generic policies like Codes of Conduct are essential, even with regulation-specific policies.
References:
* ISO 37301 (Compliance Management Systems): Emphasizes policies for setting conduct expectations.
* COSO ERM Framework: Highlights policies as governance tools for consistent behavior.