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A social media policy is an internal document that guides employee interactions on platforms like Facebook, Instagram, and Twitter. These platforms offer businesses opportunities to engage potential customers and shape brand identity but also pose risks, as insensitive posts can damage a company's reputation. The video discusses the significance of social media policies and outlines key features of an effective one. Additionally, the presenters, eFORMS, a comprehensive document database, will provide a customizable social media policy link at the video's conclusion. Finally, the video aims to clarify the differences between social media policies and other related documents.