Understanding Philosophy and Policy in Organizations
A philosophy is the underlying thinking that is prevalent in an organization. Almost always, it consists of high-level 'motherhood' statements such as: 'Employee Friendly Environment', 'Tobacco-Free Workplace', 'Women-Friendly Company', 'People Before Profits', etc.
A policy, on the other hand, is a lower-level document that contains a number of directives that set the direction and inform staff about the organization's position on a particular issue. For an 'Employee Friendly Environment', policies could include 'Work From Home Policy', 'Flexi-Time Policy', 'Paternity Leave Policy', etc.
In a nutshell, a philosophy drives organizational values, its mission statement, and its vision. Policies, on the other hand, spell out how the organization conducts various aspects of its business, transactions, and relationships within the framework of its philosophy. Also, policies are what an organization implements, while philosophy is what it espouses.
Hope this helps!