This is the first level in Kohlberg's stages of moral development where morality is based on self-interest; individuals obey rules to avoid punishment or gain rewards.
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Punishment-and-Obedience Orientation: The stage where children believe rules are fixed and absolute. Obeying the rules is important because it means avoiding punishment.
Instrumental Relativist Orientation: At this stage, children begin to understand that different people have different viewpoints. They consider actions morally correct if these serve their needs or those of others around them.
In psychology, egocentrism refers to an inability to differentiate between self and other. More specifically, it means lack of awareness that others' viewpoints are different from one's own.