Service-Oriented Computing (SOC) and Web Services (WS) provide a flexible computing platform for electronic business and commerce. Introducing policy-based computing to service-oriented business systems adds another dimension of flexibility and security. While service composition and re-composition in service-oriented business systems allow major system reconstruction, policy-based computing can better deal with the small and routine changes of business processing. This paper reports our latest research on integrating policy-based computing into service-oriented business system and discusses its feasibility, benefits and cost. Under this research, we designed a policy specification and enforcement language PSEL for specifying system constraints and business rules. We implemented a runtime environment in which a service-oriented business system can be modeled, analyzed, deployed, and executed with policy enforcement. Automated tools have been developed to facilitate the entire developm...