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A social media policy is an internal guideline for companies to manage employee interactions on platforms like Facebook, Instagram, and Twitter. As these platforms grow in prominence, they offer opportunities for businesses to engage potential customers and enhance brand identity. However, they also present risks, as inappropriate posts can harm a company's reputation. This video explores the importance of social media policies and outlines their key components. eFORMS introduces itself as a vast document database and encourages viewers to watch until the end for a customizable social media policy link. The video emphasizes the difference between social media policies and social media strategies.