Social Identity Theory proposes that people categorize themselves into social groups to derive self-esteem and a sense of belonging. Through social categorization, people perceive themselves and others in terms of social groups rather than as individuals. Social comparison involves assessing one's own group relative to other groups, and social identification occurs when one's identity is tied to their group membership. SIT explains in-group favoritism and conformity to norms. While it shows discrimination need not stem from conflict, it has been criticized for low real-world validity and does not fully explain why in-group favoritism can lead to violence or be overridden by other factors like poverty. SIT is applicable to leadership by helping leaders craft a shared group identity and