This document is written to describe a model which will enable teachers to incorporate values clarification and moral development within content-centered learning episodes. It also attempts to explain to teachers what the processes of values clarification and moral development are and to train teachers to recognize student verbal behaviors indicative of success in values clarification and moral development. Four stages of values clarification are defined: (1) the comprehension phase, in which the student understands the situation; (2) the relational phase, in which the student sees relationships within the situation and between the situation and the instructional unit; (3) the valuational phase, in which the student has an affective response to the situation; and (4) the reflective phase, in which the student examines his/her responses and the responses of other students. These phases are then examined in detail. The paper then tries to define exactly what constitutes moral reasoning. Finally, two stories are presented which contain moral dilemmas concerning property, law, money, theft, and other issues. Suggested questions are presented which would help the student look at the problems with a focus on understanding his/her own sense of ethics. (CD)