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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. As these platforms become crucial for sharing information and shaping brand identity, the potential for both engagement and risk increases. Poorly thought-out posts by employees can damage a company's reputation. The tutorial highlights the importance of establishing an effective social media policy and outlines its essential components. The video is presented by eFORMS, a comprehensive database of various documents, and encourages viewers to watch until the end for a customizable social media policy template. The video also distinguishes between social media policies and social media strategies.