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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 key for sharing information and shaping brand identity, they also pose risks, as inappropriate posts can harm a company's reputation. The video discusses the importance of social media policies, outlining what an effective policy should include. The presenters, eFORMS, a comprehensive document database, promise to provide a customizable social media policy link at the end of the video. It's crucial to differentiate between social media policies and social media strategies.