With increasing numbers of single-parent and two-career families, more parents and other community members lack the time to instill in children the values and ethics they have traditionally provided. This document addresses the challenges faced by educators as they teach these values, and it reports on successful approaches in the field, both on the state and local levels. Several questions are discussed: (1) What are the major influences on children's lives? (2) What does the public feel about the role of the schools in teaching values and ethics? (3) Is it constitutional to teach these subjects? (4) How should schools approach the subject of religion given diverse school populations? and (5) Can, or should, schools hold neutral values? Four chapters focus on the need for teaching values and ethics, the definition of values education, what school districts are doing, and steps to institute a values education program. (LAP)