Institution

An institution is an established organization or enduring pattern of social behavior that structures and coordinates the actions of individuals within a society. Institutions can be formal, consisting of organizations and systems such as governments, schools, corporations, and legal frameworks, or informal, comprising norms, customs, and social roles that guide daily interaction without centralized authority.

They provide predictability and stability by defining rights, responsibilities, and procedures; they coordinate economic activity, allocate resources, and regulate conduct; they socialize new members and transmit cultural values; and they help resolve conflicts by providing rules and legitimate authorities.

Examples include educational institutions (universities and schools), financial institutions (banks and pension systems), religious institutions, and governmental institutions. Social institutions such as family, marriage, property rights, language, and currency also function as frameworks governing behavior.

Institutions develop gradually and are influenced by historical trajectories, laws, technology, and power relations. They can adapt through reform, evolution, or upheaval, and may exhibit path dependence that resists rapid change. Critics point to issues of rigidity, exclusion, and the concentration of power within dominant groups, while supporters argue that institutions provide legitimacy and continuity.