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A social media policy is an internal guide for companies to manage their employees' interactions on platforms like Facebook, Instagram, and Twitter. As these platforms gain prominence in shaping brand identities and reaching potential customers, they also pose risks, such as harm to a company's reputation from inappropriate employee posts. The video discusses the elements of effective social media policies, differentiating them from general social media practices. eFORMS, the largest document database, presents this information and offers a link at the end for viewers to access and customize a social media policy online.