Yes it can, as it has been done before with the police system. You have a group of people watching society and reporting any criminal activity. It just so happens that the response system is already built in. Police don't go into private homes or search belongings without due process.

It should be quite easy to design a system in that way. Cameras and other surveillance tools can only be placed in public places; this will protect civil liberties while still enabling the government to better distribute justice. In effect, they will place a policeman on every street corner.