Mapping of Policies with NGRBC Principles
Why do entities need policies?
Policies are commitments for responsible conduct by the entity. They set out the values, principles and norms of behaviour for the entity. All policies need approval of the Board of Directors thus reflecting the unwavering intent of the governing body of the entity.
What are the types of policies?
Policies can be general policies which reflect the stand of the entity on a larger phenomenon like climate change, human rights. They are in the nature of broad statements. Detailed procedures are then developed based on the policy statement.
Policies are also made to deal with specific events like sexual harassment, dividend distribution. These are elaborate documents and serve as signposts for effective governance.
What are the contents of these policies?
A policy has the following sections:
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Document Version control with Version release dates- Changes made in new version
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Purpose – Objective of the Policy
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Scope and applicability of the policy
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Definition of Terms used in the policy
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Philosophy of the entity in the matter
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Policy Principles and guidelines which shall be followed by the concerned
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Details of contact persons for clarifications or complaints
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Statement on Communication and training to the concerned
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Statement on Monitoring of compliance of the policy
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Statement on Review of policy
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Board of Directors Approval