Can I say it this way " People are benefited by social networking "
Is it correct to say
People are benefited by Social Networking
when what I really want to say is that
People benefit from Social Networking
It's not incorrect if you're going for passive voice: http://en.wikipedia.org/wiki/English_passive_voice
However, you should use whichever makes the most sense in your context. I would argue that the active voice sounds better here. Maybe also consider: "Social networking benefits people."