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A social media policy is an internal guideline for companies to manage employee interactions on social media platforms like Facebook, Instagram, and Twitter. With these platforms influencing customer engagement and brand identity, businesses face potential risks from inappropriate posts that could harm their reputation. This video from eFORMS explores the significance of social media policies and outlines the characteristics of an effective one. Viewers are encouraged to watch until the end to access a customizable social media policy template. Additionally, the video emphasizes the need to differentiate between social media policies and social media usage itself.