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A social media policy is a crucial internal document used by companies to guide employee interactions on social media platforms. With the rise of platforms like Facebook and Instagram, firms have more ways to reach customers and shape brand identity, but there are also risks involved. Insensitive employee posts can harm a company's reputation. This video discusses the role and components of a good social media policy, and eFORMS offers a link to create and customize one online. Social media policies cover various aspects of social media usage by employees.