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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Difference between policy and legislation?
Dear Sir,
I am confused about the organizational environment topic and could you please explain me how policy and legislation effect the organization with few examples and also explain the difference between policy and legislation. thanks for your help.
Legislation = law. Compulsory
Policy = choice
Normally, policies should comply with the law, but not every aspect of policy is subject to law.
For example, a company might have a policy to use renewable energy, but that might be an economic choice rather than a legal requirememt.
However, there are laws governing the health and safety of employees and the company kust comply with training, protective clothing etc to meet the legislation. There is no reason why the policy couldn’t go further than the minimum legal requirements, eg by implementing annual health checks for employees.