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A social media policy is an internal document that guides employee interactions on social media platforms like Facebook, Instagram, and Twitter. As these platforms dominate information sharing, they offer companies opportunities to engage potential customers and shape brand identity, but also pose risks to reputation due to inappropriate employee posts. The tutorial explains the significance of social media policies and outlines their essential components. It introduces eFORMS as a leading document database and encourages viewers to watch until the end for a customizable social media policy template. The video also differentiates between social media policies and social media usage.