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A social media policy is an internal document that guides employee interactions on platforms like Facebook, Instagram, and Twitter. As these platforms dominate information sharing, companies can enhance their brand identity but also face risks such as reputational damage from insensitive posts. The video emphasizes the importance of having a solid social media policy and outlines its key components. eFORMS introduces itself as a comprehensive document database and invites viewers to watch until the end for a link to a customizable social media policy template. Additionally, it notes the distinction between social media policies and social media strategies.