What documented principles guide an organization in managing its affairs?

The reason "Policy" is the correct answer lies in its definition and role within an organization. Policies serve as the foundational framework that outlines an organization's official stance or approach to various issues. They are formalized documents that provide clear guidance and principles to guide decision-making, promote consistency, and ensure compliance with regulations, laws, and best practices. Policies define what is acceptable behavior, the objectives an organization seeks to achieve, and the general principles that govern its operations.

In contrast, procedures refer to the specific methods employed to carry out tasks in alignment with the policies. While guidelines offer recommendations that can help steer behavior, they are not enforced with the same authority as policies. Standards, on the other hand, are often technical references that define specific criteria or benchmarks to achieve but do not cover the broader guiding principles that policies provide. Hence, the principle of managing an organization's affairs is best encapsulated in the concept of a policy, which consolidates and articulates these guiding principles effectively.