Corporate policy is the guideline which helps the management to carry out its activities in an efficient and effective manner so that the objectives of the organization are met. However, there are different views with regard to definition of corporate policy. The features of corporate policy include general statement of principles, long term perspective, achievement of objectives, qualitative, conditional and general statements, guide for repetitive operations, helps in decision making process, provides a unified structure and helps to determine a positive declaration for its followers.
The determinants of corporate policy include internal and external determinants. The scope of corporate policy is very broad and consists of variety of subjects that affect various internal groups in the organization. The formulation of corporate policy is very important and facilitate the managers to achieve goals. The process of corporate policy formulation include four steps- environmental analysis, identification of alternatives evaluation of alternatives and choice of corporate policy.
Policies are classified on the basis of various criteria – scope, expression, level of management, nature of origin, functional areas and nature of management functions. Policies have an important role to play in organizations.