The word 'policy' may mean different things to different people. In general, it's a guiding or governing principle.
The City of Marion has defined a policy as: The overall intentions and direction of the organisation.
A 'Governance Policy' is defined using all of the following criteria:
One of the most important roles Council has is to participate in making policy and decisions on behalf of the community. An essential part of policy making is identifying community needs, setting objectives to meet those needs, establishing priorities between competing demands and allocating resources.