This theory deals with the standpoints of different individuals in a society, and argues that one's position on the social hierarchy affects one's perceptions of reality. The theory also argues that groups that are more marginalized by society have more objective viewpoints than those in power. This is because those in power seek to maintain the status quo (as it is in their own interest), but those not in power are more aware of society's problems (because they affect them) and seek change in order to give themselves more power and take power away from those higher up in the hierarchy.
An example of this theory in action in the real world would be where one part of a country has a significant amount of institutionalized racism, while another region does not. Those in the region without the same level of racism may be unaware of what is occurring in the other part of the country and mistakenly believe that it is the same in that region. However, members of the race that is being discriminated against in the other region would be much more aware of what is going on and be better able to explain the situation than those not living in that region.
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