1) Social Reaction Theory, also known as Labeling Theory, proposes that society's reaction to and labeling of criminal behavior shapes a person's identity and increases the likelihood of continued criminal behavior. 2) The theory was developed in the 1930s and founded by Erwin Lemert, who described deviance occurring in two stages - primary deviance involving an initial criminal act without societal labeling, and secondary deviance where the individual internalizes the criminal label. 3) Labeling from the legal system and society can withdraw the individual from conventional roles and relationships, reducing self-esteem and increasing criminal behavior as a means of adaptation or defense against the problems caused by societal reaction.