Definition of business policy. 1  1. Definition of Business PolicyBusiness Policy defines the scope or spheres within which decisions can be taken by thesubordinates in an organization.2  2. 8. 3  3. 5) The purpose of a business policy is to enable the management to relate properly theorganization’s work to its environment.efinition of business policy. 1  1. Definition of Business PolicyBusiness Policy defines the scope or spheres within which decisions can be taken by thesubordinates in an organization. 2  2. 8. 3  3. 5) The purpose of a business policy is to enable the management to relate properly theorganization’s work to its environment.