Are eSignatures legally binding?

Yes. Electronic signatures are legally valid in the United States under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions exist for wills, certain court documents, and other statutory exclusions.

Do I need a notarization?

Not usually for internal guiding principles. Notarization may be required for documents needing public record or attestation. Remote Online Notarization (RON) rules vary by state; verify state notary law before relying on it.

How should I store the signed document?

Store the executed PDF with an audit trail that captures signer identity, timestamp, and IP address. Retain according to applicable rules such as IRS (3 years) and HIPAA (6 years) where relevant.

When is a Business Guiding Principles update required?

Update when material changes occur in law, organizational structure, or strategy; additionally conduct at least an annual review to confirm continuing relevance and compliance.

What authentication level is recommended?

Use email or SMS for routine internal approvals; require stronger authentication (KBA, MFA) for high-risk approvals or documents with legal effect where additional identity assurance is necessary.

How do I evidence consent to electronic records?

Capture an affirmative consent statement per ESIGN requirements and ensure the signer can access and retain the electronic record; for consumer-facing transactions include the ESIGN consumer disclosure where required.

Electronic Signature
Templates
Miscellaneous
Business Guiding Principles

Business Guiding Principles

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business Guiding Principles

Company Name: Effective Date:

Recitals

WHEREAS, Company Name: seeks to establish formal guiding principles to govern its business conduct, operations and contractual relations; and

WHEREAS, Counterparty: and Company desire to set forth mutual expectations, measurable obligations, and standards of behavior applicable to activities described herein; and

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows.

1. Definitions

For purposes of this Agreement, "Confidential Information" means all non-public business, technical and financial information disclosed by a Party to the other Party, whether disclosed orally or in writing and marked or otherwise identified as confidential. Confidential Information does not include information which is or becomes publicly known through no breach of this Agreement, was rightfully received from a third party without restriction, or which must be disclosed pursuant to applicable law or valid order of a court or regulatory body.

2. Business Guiding Principles

The Parties commit to the following core principles: professionalism and integrity in all dealings; transparency in communications and reporting; compliance with applicable laws and ethical standards; protection of Confidential Information; continuous improvement of operations and customer service; and fair treatment of employees, suppliers and customers. These principles shall inform decision-making, contracting practices, and operational policies adopted under this Agreement.

3. Scope of Work

Describe the activities, deliverables, and responsibilities that implement the guiding principles:

4. Payment Terms

As full consideration for the services described in Section 3, Company shall pay Counterparty the amounts and on the schedule set forth below. All payments are subject to the terms of this Section and any applicable withholding or tax obligations required by law.

Payment Amount (USD): Payment Schedule / Milestones: Late Payment Fee:

Invoices shall be submitted in writing and shall include sufficient detail to permit verification. Unless otherwise agreed, undisputed invoices shall be paid within days from receipt.

5. Term and Termination

Term: This Agreement commences on the Start Date: and continues until the End Date: unless earlier terminated in accordance with this Section.

Either Party may terminate this Agreement for convenience upon prior written notice of days to the other Party. Either Party may terminate immediately for material breach that is not cured within thirty (30) days after written notice specifying the breach.

6. Confidentiality

Each Party shall: (a) hold Confidential Information of the other Party in strict confidence using at least the same degree of care it uses to protect its own similar information; (b) use Confidential Information solely for the purposes contemplated by this Agreement; and (c) not disclose Confidential Information to any third party except as expressly permitted in writing. The obligation of confidentiality shall survive termination or expiration of this Agreement for years.

Notwithstanding the foregoing, a receiving Party may disclose Confidential Information to the extent required by law or valid order of a court or regulatory authority, provided that, to the extent permitted, the receiving Party gives prompt written notice to the disclosing Party and cooperates in any effort to limit the disclosure.

7. Compliance and Ethics

Each Party agrees to comply with all applicable laws, rules and regulations and to maintain ethical business practices consistent with the guiding principles set forth in this Agreement. Each Party shall promptly report any known or suspected violations of law or material breaches of these principles to the other Party and take reasonable corrective action.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in that State for resolution of disputes arising under this Agreement.

9. Entire Agreement; Amendment

This Agreement, together with any exhibits or schedules attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. No amendment or modification of this Agreement shall be effective unless reduced to writing and signed by authorized representatives of both Parties.

10. Miscellaneous Provisions

10.1 Assignment. Neither Party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other Party, except to an affiliate or successor in interest in connection with a merger or sale of substantially all assets.

10.2 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect.

10.3 Notices. Any notice required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as either Party may designate by notice.

Contact and Notice Information

Company Contact: Counterparty Contact:

Company Representative:

By:

Date:

Counterparty Representative:

By:

Date:

What Business Guiding Principles Are and why they matter

Business Guiding Principles are a written framework that captures a company's core values, decision-making criteria, and expected behaviors for employees and stakeholders. They serve as an operational reference to align daily actions with strategic priorities, inform policy interpretation, and guide managers when precedent or policy leaves gaps. For many organizations these principles form the basis of internal governance, ethics training, and vendor relationships. When documented clearly they help reduce ambiguity, speed decisions, and provide a consistent foundation for onboarding, compliance reviews, and external reporting.

Why a formal set of guiding principles adds value

Documented principles make expectations explicit, reduce ad hoc decision-making, and provide a consistent baseline for training and dispute resolution across departments.

Who typically creates and relies on Business Guiding Principles

Senior leadership, HR and legal teams commonly draft the principles to reflect governance, compliance, and culture objectives.

Executive teams and boards who set strategy and tone for the organization
Human resources for onboarding, performance reviews, and code of conduct enforcement
Legal and compliance teams for aligning principles with regulatory obligations

Operational managers, compliance officers, and external partners use the document to interpret policy and ensure consistent application.

Key roles that sign and enforce the principles

Chief Executive

The CEO typically endorses and signs the final principles; this signal of leadership support helps ensure organization-wide adoption and provides standing for escalation of violations.

General Counsel

Legal review ensures principles align with statutory obligations, employment law, and regulatory compliance; counsel often recommends retention periods and updates tied to legal changes.

Required information to include in the document

Document Title: Business Guiding Principles

Effective Date: MM/DD/YYYY

Approving Authority: Name and position

Scope: Applies to which entities

Review Cycle: Annual or other cadence

Signature Block: Signer name and date

Risks if the principles are incomplete or inconsistent

Regulatory Risk: Misalignment with regulatory requirements

Operational Drift: Inconsistent decisions across teams

Litigation Exposure: Contract or employment disputes

Reputational Harm: Public trust erosion

Retention Issues: Poor recordkeeping or audit failures

Noncompliance Fines: Potential penalties under law

Common pitfalls when drafting guiding principles

Being too vague: aspirational language that lacks operational guidance frustrates implementers and invites inconsistent interpretation.
Overloading the document with legalese rather than usable standards reduces adoption and makes daily decisions harder for managers.
Failing to update: static principles that ignore regulatory or market changes create compliance gaps and operational confusion.
Ignoring scope: not specifying which entities, subsidiaries, or geographies the principles cover leads to disputes and uneven enforcement.

How other organizations apply Business Guiding Principles

Real-world examples show how principles guide decisions across sectors and help document intent for auditors and partners.

Optica Ventures LLC

Leadership alignment drove a single-source framework for vendor selection

Focused on procurement thresholds and risk tolerance
The result standardized third-party checks and reduced procurement cycle time while preserving oversight.

Fertility Centers of Illinois

Health-specific privacy principles were integrated into operations

HIPAA-focused addenda ensured clarity
This approach supported patient consent procedures and reduced audit exceptions.

Step-by-step: create and approve your Business Guiding Principles

Follow a simple sequence from drafting to approval to ensure principles are actionable, reviewed, and signed by authorized parties.

01

Draft: Collect input from leadership, HR, legal and operations.
02

Review: Legal and compliance validate regulatory alignment.
03

Approve: Senior leadership or board formalizes and signs.
04

Publish: Distribute to employees and partners with training.

How to route and document approvals

A clear routing workflow reduces friction and creates an auditable trail of who reviewed and approved the principles.

Prepare: Upload the draft and add review fields.
Assign: Identify reviewers and approval order.
Sign: Collect signatures and dates from approvers.
Archive: Store the executed version and audit logs.

Essential components of a professional set of Business Guiding Principles

Ensure the document balances high-level values with practical direction so that staff and partners can apply it in routine and exceptional situations.

Purpose Statement

A concise explanation of why the principles exist and the business outcomes they support, linking to mission and strategy.

Core Values

Three to seven clear value statements that are behaviorally described so staff know expected conduct in common scenarios.

Decision Criteria

Concrete rules or thresholds (e.g., approval limits, vendor risk tolerances) that guide operational decisions and escalation.

Roles and Responsibilities

Who enforces, reviews, and updates the principles, including named offices or committees and their remits.

Conflict Resolution

A straightforward escalation path and tie-breaker rules when interpretations conflict between departments.

Review and Revision

A stated review cadence and the authority responsible for revisions with version history retained for audits.

Practical tips for drafting clear and enforceable principles

Apply drafting practices that favor clarity, enforceability, and ease of training to improve adoption and reduce disputes.

Use plain, operational language

Write short, specific directives that operational teams can translate into procedures; avoid abstract or aspirational phrases that lack application guidance.

Limit scope and reference policies

Define what the principles cover and link to existing policies so users know where to find detailed procedures and exceptions.

Document approvals and versions

Retain an approval record and version history showing who signed, when, and what changed between versions for auditability.

Train and test adoption

Run targeted training sessions and scenario exercises to confirm that staff apply the principles consistently and note common interpretation gaps.

Key milestones from draft to organization-wide adoption

Track these sequential milestones to move from initial draft to full implementation while preserving approval evidence and version control.

01

Draft Completion

Complete initial draft and collect supporting references and existing policies.

02

Legal Review

Complete legal and compliance review and incorporate recommended changes.

03

Executive Approval

Secure signatures from required leadership or board authority.

04

Rollout

Publish, train staff, and archive the executed document with audit records.

Typical timing and review deadlines to plan for

Assign firm dates for review, renewal and audit checks so the principles remain current with legal and business changes.

Approval Effective Date:

Set the effective date (use MM/DD/YYYY) when signed by authorized approvers.

Annual Review Cycle:

Conduct a documented annual review to confirm relevance and capture regulatory changes.

Policy Reconciliation:

Complete reconciliation with related policies within 60 days of adoption.

Training Rollout:

Deliver training within 90 days of publication to affected staff.

Audit Checkpoints:

Schedule internal audit verifications at least once per year.

Typical eSignature pricing and feature overview for document workflows

Compare core price points and common enterprise features. signNow is listed first per platform comparisons; competitor columns show typical starting prices and feature presence.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

How to configure a digital workflow for approvals and signatures

A concise workflow configuration speeds implementation and reduces signer confusion when collecting approvals electronically.

Field	Configuration
Template	Create reusable templates for consistent structure
Conditional Fields	Show or hide fields based on prior answers
Authentication	Use email, SMS, or advanced signer methods
Notifications	Set reminders and completion alerts for approvers

Technical considerations for eSignature and distribution

Verify supported file formats, authentication methods, and integrations before selecting a platform.

File Formats: PDF, DOCX, HTML, Excel supported
Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
Security: TLS 1.2/1.3 and AES-256 encryption

Frequently asked questions about Business Guiding Principles and e-signing

Answers to common execution, validity, and retention questions for organizations using electronic signatures and digital workflows.

Need help? Contact support

Are eSignatures legally binding?
Yes. Electronic signatures are legally valid in the United States under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions exist for wills, certain court documents, and other statutory exclusions.
Do I need a notarization?
Not usually for internal guiding principles. Notarization may be required for documents needing public record or attestation. Remote Online Notarization (RON) rules vary by state; verify state notary law before relying on it.
How should I store the signed document?
Store the executed PDF with an audit trail that captures signer identity, timestamp, and IP address. Retain according to applicable rules such as IRS (3 years) and HIPAA (6 years) where relevant.
When is a Business Guiding Principles update required?
Update when material changes occur in law, organizational structure, or strategy; additionally conduct at least an annual review to confirm continuing relevance and compliance.
What authentication level is recommended?
Use email or SMS for routine internal approvals; require stronger authentication (KBA, MFA) for high-risk approvals or documents with legal effect where additional identity assurance is necessary.
How do I evidence consent to electronic records?
Capture an affirmative consent statement per ESIGN requirements and ensure the signer can access and retain the electronic record; for consumer-facing transactions include the ESIGN consumer disclosure where required.

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