The usage of social media platforms is still growing and that since years. Also companies started or would like to start their activities within the social media platforms. Only on Facebook, one of the most famous social media platform, more than 800 million users (Facebook, 2011) worldwide are active. This figure shows, that the topic social media gets more and more important, also for the companies. They can reach a lot of users at one time without realizing a very expensive marketing campaign. But social media platforms are also risky in regards to privacy issues, unwanted data loss or identity thefts. In order to minimize these risks, a proper social media governance and policy have to be in place. As social media is quite new for business usage, no good practices for creating them is available. This master thesis closes this gap and provides the companies a clear and complete good practice for an effective social media governance and policy.