This document, the fourth in a series on diversity in the classroom, supports the belief that challenges faced by teachers working with diverse students can only be met through teacher practices that increase levels of positive teacher-student interaction and that create, in each student, effective social and problem solving skills. Section 1, "Prevention," focuses on Planning Proactively; Principles, Procedures; and Rules; Guidelines for Developing Democratic and Effective Rules; Developing Logical Consequences; Working with Students to Prevent Behavioral Problems; Building a Positive and Caring Classroom Climate; Using Your Classroom's Organization; Preventing Behavioral Problems; Preventing Discipline Problems--Working with Parents; and Preventing Discipline Problems--Teaching and Modeling Self-Discipline. Section 2, "Positive Action," presents Strategies for Taking Positive Action with Discipline Problems. Tips to help administrators support positive classroom environments are included. (Contains 39 references.) (SM)