This paper seeks to describe the fundamental properties of social reality and elucidate the normative behavioural processes constituting these properties. Relying on previous theoretical work on social behaviour and institutions, the paper synthesises key theoretical concepts and put forward a formal expression of these. Social reality is conceptualised as an institutional reality, where normatively based phenomena such as language, cultures and ideologies are considered institutions. These institutions are established through collectively accepted systems of rules, known as status functions. The creation of institutions relies on collective intentionality and brings about deontologies that provide reasons for action independent of personal inclinations. Norm circles are described as the social entities that establish and enforce normative pressure, thereby maintaining status functions. These circles are crucial for the creation and sustenance of institutions, as the rules of institutions lack causal power on their own. Social structures are understood as both the ontologically subjective characteristics internalised by individuals and the epistemically objective phenomena that shape these characteristics. The proposed theory acknowledges the existence of external social structures while addressing critiques of reductionism by highlighting the internalisation of characteristics by individuals.