They keyword here is "system" and by this I think they mean Operating System or a similar thing - not application/program/etc.
I repeat again: the GPL is all about distribution.
The applicable part of the license is point 2) and most specifically 2.b)
Quote from the gpl:
---
2. You may modify your copy or copies of the Program or any portion of it, thus forming a work based on the Program, and copy and distribute such modifications or work under the terms of Section 1 above, provided that you also meet all of these conditions:
a) [...]
b) You must cause any work that you distribute or publish, that in whole or in part contains or is derived from the Program or any part thereof, to be licensed as a whole at no charge to all third parties under the terms of this License.
c) [...]
---
Notice that the license says "work that you distribute or publish". And as it says in the gpl faq, the "all third parties" means the parties that receive the distributed/published work.
Within a company/organization, the "receiving" party is the organization itself, and it already has the source code.
Note that this results in several important points:
-> an organization may use/modify GPL software.
-> the resulting application/program is licensed as a GPL program.
-> the organization is NOT obligated to give the program to anyone:
http://www.gnu.org/licenses/gpl-faq.html#CanIDemandACopy.
-> if at any time the organization decides it wants to "sell" the program, THEN it has to distribute (make available) the source code along with the program. Needless to say, it won't sell many copies of the program as the sources will then be available for anyone to use.
My point is this: if you don't want ActiveWidgets used on a commercial/proprietary setting you should be license it under another license, not the GPL. You should contact someone you really trust (to know about licenses), a lawyer and/or the FSF to clear this point.