This report, prepared by the Studies in Delinquency and School Environments program, presents a theory of delinquency and proposes an action research strategy to develop delinquency prevention programs in schools. The materials build on the theories of Hirschi and Bandura, and assume that: (1) home and school experiences can be rewarding or unrewarding; (2) school, community, and family influence the development of stakes in conformity by the reinforcement properties of the environments provided; and (3) delinquency can be prevented by altering reward structures to develop stakes in conformity and ties to parents, school, work, and nondelinquent peers. Present knowledge about delinquency is summarized along with ways to organize and use the information. Strategies which schools may employ to produce organizational change and discourage delinquency are enumerated, and steps to be taken in the action research model are reviewed. A guide lists suggestions for policy makers wishing to implement such organizational changes. (NRB)