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A social media policy is an internal document that guides employee interactions on platforms like Facebook, Instagram, and Twitter. As these platforms become primary channels for sharing information, they also present significant risks; inappropriate posts can damage a company's reputation. The video outlines the importance of social media policies and provides insight into what an effective one should include. eFORMS, the largest database for various documents, introduces itself and encourages viewers to watch until the end for a customizable social media policy link. Furthermore, the video emphasizes the need to differentiate between social media policies and social media strategies.