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A social media policy is an internal document guiding employee interactions on platforms like Facebook, Instagram, and Twitter. As these platforms grow in importance for brand identity and customer engagement, they also present risks, as inappropriate posts can damage a company's reputation. This video discusses the significance of social media policies and outlines the characteristics of an effective one. The presenters, eFORMS, emphasize that viewers should watch until the end to access a customizable social media policy template. Additionally, they highlight the need to differentiate between social media policies and general social media usage.