What is the policy hierarchy?

Companies often have charters or constitutions as the highest level of policy. This delineates the organization's fundamental principles, objectives, and goals.

• Laws and statutes

Laws and statutes refer to legal policies made by federal, state, and local government bodies. Professional organizations can also sometimes contribute to this area.

• Regulations

Regulations can vary depending on the industry a company is operating in. Regulations are often formed by government agencies and other regulatory bodies. This normally determines how specific laws and statutes should be implemented by companies in various industries.

• Corporate policies

Corporate policies are determined by the heads of an organization, this might include officials like a chief executive officer (CEO), board of directors, or other senior management officials. Corporate policies are meant to guide the actions and decision-making of a company.

• Operating procedures

Operating procedures are often the outlining of how certain policies are to be carried out at an organization. They might include step-by-step processes.

• Guidelines

Guidelines are typically at the bottom of a company's policy hierarchy, as these are more informal policies that can provide clarification on existing policies or direction in terms of how certain policies should be implemented.