This paper considers some empirical research into the modelling of moral values in schools, which highlights the hidden impact of working environments on classroom relationships. After an initial survey and pilot study, a range of primary, secondary and student teachers, selected for their empathy, were interviewed and observed in order to understand the nature of empathy in different contexts. The findings revealed four particular types of empathy used in learning relationships: fundamental, functional, profound and feigned. Of these, functional, used in large classes, was the most common, but revealed considerable negative implications for the moral model offered by state education. Profound empathy, more rarely seen, developed through close and frequent interaction and held the most beneficial consequences for moral modelling, learning relationships and achievement. However, the economic values embedded in the structures and systems of the state education sector, typified by large classes, restrict the flourishing of profound empathy.