It encourages people to avoid things like smoking, drug use, alcohol abuse, "fornicating" and the risk of things associated with that (both physcial and emotional), dishonesty, and other bad behaviors that can cause one problems in life. Yes, positive peer pressure.
It provides a social network of (mostly) good associates for families, including a place for young people to meet other young people who also have higher than average morals and convictions.
=========================================================================================== Obviously you have not been a JW youth. Or a JW, I would bet. When you encourage people to avoid things out of FEAR, it doesn't work. I have met far more alcoholics among JWs than elsewhere. The only place I have met wife swapping has been among JWs. Dishonesty? How about every time they talk about Bible doctrine? Positive peer pressure? You mean knowing that your "friends" will turn on you if you so much as sneeze "cigarette"? Judge you for both real and supposed behaviours? Young people? I'd say the JW youth I grew up amongst were far MORE immoral - using drugs, wild parties, alcohol use - than the kids in our church, or the kids elsewhere. High than average morals? Not really. Convictions? How can they be strong convictions when they change every 15 minutes? Again, any group that operates on its members from fear is never beneficial in the long run.