A research-based pedagogy which emphasizes shared democratic values holds promise for promoting unity while accommodating diversity in American society. This literature review explores the role of educators in instilling democratic values that are embodied in the "American Creed": freedom, equality, justice, and human dignity for all people. Once part of education in the United States in the early 20th century, character education later fell into decline. Recent research, however, indicates a revival of interest in teaching values and ethical behavior and in ways in which values are taught directly and indirectly in U.S. schools. Research has also revealed no direct link between values and behavior, suggesting that people do not always have the courage of their convictions and that behavior modification may be a better way to change behavior and influence values. Also, values education tends to center on elementary education rather than secondary schools. Data from educational research and from practical experience of professionals indicate that integrating democratic values into the curriculum can reduce student prejudice, promote positive student attitudes toward diversity, and increase tolerance. Thirteen strategies for inculcating democratic values are recommended. (Contains 27 reference.) (ND)