Business Activity Management (BAM) is becoming one of the most critical areas to transform a business into an adaptive enterprise. However, to manage business activities and the related resources is a very complex task because of the potentially large number of business rules and unpredictable changes of business situations. Policy-based approach is essential to make such challenging tasks practical and feasible. In this paper, we present a policy framework for the BAM domain. We will cover the conceptual model, policy specification, policy architecture, and a case study for the framework and related components. Comparison with other similar works will be given at the end of this paper.