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A social media policy is an internal document that guides employee interactions on social media platforms like Facebook, Instagram, and Twitter. As these platforms become essential for sharing information and shaping brand identity, they also pose risks; poor posts can harm a company's reputation. The video discusses the role of social media policies and outlines key characteristics of effective policies. Viewers are introduced to eFORMS, a comprehensive document database, and are encouraged to watch until the end for a customizable social media policy link. It’s crucial to differentiate between social media policies and social media use.