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A social media policy is an internal guideline for employees on how to interact on social media platforms like Facebook, Instagram, and Twitter, which are crucial for brand identity and customer engagement. However, these platforms also pose risks, as inappropriate posts can harm a company's reputation. The video discusses the importance of social media policies and what constitutes an effective policy. The presenters, eFORMS, a comprehensive document database, encourage viewers to watch until the end for access to a customizable social media policy template. Additionally, the video seeks to clarify the difference between social media policies and general social media practices.