Understanding Culture, Society and Politics

1
Social Institutions

Social Institutions

Social institutions are organized sets of elements such as beliefs, rules,

practices, and relationships which are established with the aim of attaining
social order. They are densely interwoven and enduring, and are important
structural components of modern societies. Without these institutions, the
society won’t last.
Social institutions play a wide range of essential roles to our society.
In this lesson, you will learn the following:
1. Understand what a non-state institution is and its functions
2. Differentiate functions of non-state institutions in society

The Non-State Institutions

State Institutions are institutions that are within the control of the State.
Non-state Institutions refers to institutions that are not under the control of
the government or by the State. Both the state and non-state institutions are
essential for the development of the society, and we are unable to progress
without either one of them.
The non-state institutions strive to come up with services and other
necessities which the members of the society need in order for them to
progress.

Banks and Corporations

One of the non-state institutions that serve an important purpose to the
society are the banks and corporations. They are an important part of the
economic structure of the State.
The society relies on banks when it comes to keeping their wealth. Banks
provide a safe place to save excess cash, known as deposits. However, banks
do not merely store money or assets. They primarily make profit by lending a
portion of the deposited money to corporations, who make use of loans as
capital for their businesses.
Corporations refers to legal entities which are established under state law
that are designed to generate a profit. They are an essential driving force for
the economy of a state. They produce the products and services that we use
in daily life. Moreover, they create millions of jobs, which helps individuals to
be able to fulfill their basic needs.

Course Module
Religion
Religion is another social institution that is not under the control of the
government. The separation of Church and State, allowed people in certain
countries to practice religious freedom with government interference.
Religion is an essential part of a society, in a way that it has been the basis of
most of the laws and rules of governance among different states since the
ancient times. Before the laws were made, most societies rely on religion in
order to establish norms which helped maintain social order.

Cooperatives and Trade Unions

Cooperatives and Trade Unions are non-state institutions that play a major
role in the economic development of the society. They are directly involved
with economic systems of production and distribution. Moreover, they also
influence the course and content of employment, as well as the social and
economic policies.
Trade unions and cooperatives are established to ensure the welfare of the
workers as well as the consumers. They look after the interests of their
members and ensure that the employers will not abuse them. Trade unions
also regulate the working relationship between the unions and the
employers.

References
Social Institutions. Retrieved from:
https://www.soz.univie.ac.at/fileadmin/user_upload/inst_soziologie/
Personen/Institutsmitglieder/Verwiebe/Social_Institutions_in_Encycl
opedia_of_Quality_of_Life_Research.pdf
State Institutions. Retrieved from:
http://siteresources.worldbank.org/INTPOVERTY/Resources/33564
2-1124115102975/1555199-1124115187705/ch3.pdf
What are the Five Functions of Social Institutions? Retrieved from:
http://www.studylecturenotes.com/basics-of-sociology/what-are-
the-five-functions-of-social-institutions
Thomas, Henk. Trade Unions and development. Retrieved from:
http://library.fes.de/pdf-files/gurn/00168.pdf
What is Banking? How Does It Work? Retrieved from:
https://www.thebalance.com/what-is-banking-3305812
The Role of Corporations and Corporate Governance. Retrieved from:
http://businessroundtable.org/resources/corporations-101-the-role-
of-corporations-and-corporate-governance