A policy is a predifined set of mechanisms (system) adopted as the manner of guiding the decision making process in order to reach a rational outcome. Goverments are in charge of those at the national level.
For example, economic policies are implemented in order to achieve certain predefined objectives such as price stability or economic growth.
Napoleon established all of the following in France, except: b. the abolition of taxes. He only removed the tithes the Third Estates has to pay and made all the Estates pay taxes.