The role of the university in moral and value issues are discussed in a 1987 inaugural address by the president of Indiana University. He suggests that a college education should include values through both intellectual inquiry and example. Liberty to speak and write is an essential value if faculty and students are to achieve their academic missions. The freedom of the university ensures that many approaches to moral tenets may be tested. A key value at the university is the morality of reason that requires examination of issues to help avoid prejudice. An important dimension of what students learn is a process of self-examination through rational inquiry. The morality of respect and belief in the worth of each individual is linked to the concept of equal opportunity. The moralities of reason and respect must be joined by a morality that recognizes the importance of learning for its own sake and for the sake of the learner. Colleges also provide a forum for public inquiry on key public policy issues. Appreciation of the arts has a special place at Indiana University. Leadership qualities of university presidents that affect the development of values are also considered. (SW)