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A social media policy is an internal document that guides how employees interact on social media. As platforms like Facebook, Instagram, and Twitter become prevalent, companies have new opportunities to engage customers and shape their brand identity. However, the rapid nature of social media can pose risks, as insensitive posts can harm a company's reputation. The video discusses the importance of social media policies and offers insights on what a good policy should include. The presenters, eFORMS, emphasize their role as a comprehensive document database and invite viewers to watch until the end for access to a customizable social media policy. They also clarify the distinction between social media policies and other related guidelines.