Corporate policy

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Corporate policy is part of the first phase in the strategic management process

The company policy comprises measures and decisions that represent a concretization of the company philosophy and vision, but are still relatively abstract, especially in contrast to specific decisions about products or production facilities. The formulation and permanent implementation of corporate policy are the tasks of strategic management . In particular, the behavior towards the outside ( stakeholder groups ) and internally ( employees ) must be regulated.

In normative management, corporate policy is the generic term for corporate governance on the one hand and corporate culture on the other.

In the process flow of strategic management, the first phase deals with setting goals, i.e. H. the development of corporate policy, the mission statement and strategic objectives.

In practice, the basic corporate policy orientation is usually not fully or not at all recorded in writing. Nevertheless, this would be useful, as such instructions and obligations would be available for management and employees.

Contents of a company policy

Company policy should state positions in the following areas:

  • Basic purpose of the company, basic economic function (e.g. type of goods or services to be provided)
  • Basic goals of the company (e.g. image, product, success and liquidity goals)
  • Principles of conduct towards stakeholders (e.g. social objectives towards individual stakeholders)
  • Basic concept of corporate management (e.g. organizational form, management concepts , planning and control system)

It serves to find a consensus in the values and interests of all groups involved in the company or affected by their actions and the permanent maintenance of sustainable relationships with these groups. It thus serves to ensure the willingness to cooperate .

If a company is important for society as a whole, it is in the field of tension between the claims of the owners ( shareholders ) and the other affected groups. These additional stakeholder groups without ownership rights in the company ( Stakeholders ) and the company or its owners are mutually dependent. However, the power to define and make decisions is not evenly distributed. The corporate policy defines the framework conditions and guidelines for the company, taking into account the relevant shareholder and stakeholder requirements.

Company policy deals with relatively abstract policy decisions. The company policy cannot be implemented through a few time-limited projects and measures. Rather, it is implemented by considering it as a guideline and framework for all future decisions and actions. Once the corporate policy has been formulated, the implementation of the corporate policy is a continuous process.

Individual evidence

  1. Joachim Paul: Introduction to General Business Administration: With Examples and Case Studies , Gabler, 1st edition, 2006, ISBN 3834903361 , page 188
  2. Domschke & Scholl: Fundamentals of Business Administration , Springer, 3rd edition, ISBN 3540850775 , page 346
  3. ^ Armin Töpfer: Business administration: application and process-oriented basics , Springer, Berlin / Heidelberg 2007, 2nd edition, ISBN 3540493948 , page 428
  4. ^ P. Ulrich, E. Fluri: Management . Haupt Verlage, Bern / Stuttgart 1992, ISBN 3-2580-4370-1 , page 77