This digest addresses two components in the moral and ethical preparation of teachers: identification and assessment of professional ethical concepts and structures in teacher education, and foundations and specific models for the preservice training of teachers of character. A teacher's first moral obligation is to provide excellent instruction. Teachers with high levels of moral professionalism have a deep obligation to help students learn and to demonstrate their moral professionalism. Teachers' professional ethical dispositions must now be addressed as part of the National Council for Accreditation of Teacher Education (NCATE) accreditation process. Four components of ethical education include: moral sensitivity, moral judgment, moral motivation, and moral character. Each component is clearly defined, and educational goals, teaching strategies and assessment methods can be derived from those definitions. Professionals in education need objective knowledge about how children form a basic sense of right and wrong and how schools can reinforce appropriate development. An appropriate classroom environment can enhance students' positive dispositions if teachers receive proper training. The digest highlights three teacher education programs offering students the knowledge and professional skills to integrate character education into classroom practices. It concludes that moral and ethical issues, including character education, are slowly becoming part of teacher education programs, with deans and administrators of teacher education programs agreeing that core values can and should be taught in schools. (Contains 21 references). (SM)