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If this definition sounds vague or confusing, it's likely because a public policy is generally not a tangible thing but rather is a term used to describe a collection of laws, mandates, or regulations established through a political process.
noun, plural policies. 1. a definite course of action adopted for the sake of expediency, facility, etc.: We have a new company policy. 2. a course of action adopted and pursued by a government, ruler, political party, etc.: our nation's foreign policy.