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A social media policy is an internal document used by companies to guide employee interactions on social media platforms like Facebook, Instagram, and Twitter. These policies help firms engage with potential customers and shape their brand identity. However, the speed of social media can pose risks, as insensitive posts can harm a company's reputation. eFORMS, a database of various documents, provides a link to a customizable social media policy at the end of the video tutorial. The policy outlines guidelines for employees' social media behavior.