Social threefolding is a social theory which originated in the early 20th century from the work of Rudolf Steiner. Of central importance is a distinction made between three spheres of society – the political, economic, and cultural. The conviction here is that when economy, culture, and polity are relatively independent of one another, they check, balance, and correct one another and thus lead to greater social health and progress. This should not be confused with laissez-faire economics, however. Steiner was concerned rather that businesses should not be able to buy favorable laws and regulations, and that governments should regulate the economy and protections for workers impartially and not be corrupted by participating in business. “A sphere of life calls forth interests arising only within that sphere. Out of the economic sphere one can develop only economic interests. If one is called out of this sphere to produce legal judgements as well, then these will merely be economic interests in disguise.”. Social threefolding aims to foster:

• equality and democracy in political life,
• freedom in cultural life (art, science, religion, education, the media), and
• uncoerced cooperation in a freely contractual economic life.

In 1917, during the First World War, Steiner first proposed what he often called the "threefoldment of the social organism." Then in 1919, during the German Revolution following the end of the war, Steiner was asked by several colleagues to lead and did lead a public campaign for threefold social ideas. In 1922, he gave a series of lectures on economics from the threefoldment perspective.

Steiner suggested the cooperative independence of these three societal realms could be achieved both through relatively gradual, small-scale changes in individual enterprises, as well as by relatively rapid medium- and large-scale changes in whole economic regions or even in whole societies. Steiner insisted that large-scale changes could only be implemented if accepted by the will of the majority in society, i.e., democratically.

Steiner rejected all ideology, characterizing it as a restriction and imposition on what lives in people.

Instead, Steiner sought to create conditions whereby people themselves could act creatively within the economy (through what he called associations, as well as through what today is sometimes called steward-owned business and stakeholder capitalism), within politics (through more participatory forms of direct democracy), and within culture (through the autonomy of teachers and other cultural workers). “All ideal programs are to be dismissed, all prescriptions are to be dismissed, everything is placed into the immediate impulse of the individual ability.”

Steiner described how the three spheres had been growing independent over thousands of years, evolving from ancient theocracies which governed all aspects of society; then, gradually separating out the purely political and legal life (beginning in Ancient Greece and Rome); then again, the purely economic life (beginning with the Industrial Revolution).

Steiner saw this trend as evolving towards greater independence of the three spheres in modern times. However now this evolution must be taken up with conscious intention by society.

Steiner held it socially destructive when one of the three spheres tries to dominate the others. For example: - "Theocracy" occurs when a cultural impulse dominates economy and politics; - Unregulated and socially irresponsible capitalism allows economic interests to dominate politics and culture; and - State socialism means political agendas dominate culture and economic life.

A more specific example: Arthur Salter, 1st Baron Salter suggests governments frequently fail when they begin to give “discretionary, particularly preferential privileges to competitive industry [hence fascism].” The goal is for this independence to arise in such a way these three realms mutually balance each other, providing healthy cultural equilibrium.

Many concrete reform proposals to advance a “threefold social order” at various scales have been advanced since 1919. Some intentionally cooperative businesses and organizations, mostly in Europe, have attempted to realize a balance between the three spheres, given existing local structures. Waldorf schools deserve special mention in this regard. Another application has been the creation of various socially responsible banks and foundations. Bernard Lievegoed incorporated significant aspects of social threefolding in his work on organizational development.