Final answer:
Children in stage 4 of Selman's theory develop the ability to compare others' views to the generalized other, showing a high level of social understanding and the emergence of a 'self' within societal context.
Step-by-step explanation:
According to Selman, children in stage 4 attempt to understand others' views by comparing them to the generalized other. This term 'generalized other' refers to the common behavioral expectations of general society. By this stage of development, an individual is able to imagine how he or she is viewed by one or many others, and thus, from a sociological perspective, to have a 'self'. In contrast to other stages, where children might exhibit egocentric behavior or consider the perspective of a singular other person, this concept implies a significant advancement in social awareness and understanding.