What has soul in it differs from what has not, in that the former displays life. Now this word has more than one sense, and provided any one alone of these is found in a thing we say that thing is living. Living, that is, may mean thinking or perception or local movement and rest, or movement in the sense of nutrition, decay and growth. Hence we think of plants also as living, for they are observed to possess in themselves an originative power through which they increase or decrease in all spatial directions.
In a word, acts of any kind produce habits or characters of the same kind. Hence we ought to make sure that our acts are of a certain kind; for the resulting character varies as they vary. It makes no small difference, therefore, whether a man be trained in his youth up in this way or that, but a great difference, or rather all the difference.
There are two distinctive peculiarities by reference to which we characterize the soul (1) local movement and (2) thinking, discriminating, and perceiving. Thinking both speculative and practical is regarded as akin to a form of perceiving; for in the one as well as the other the soul discriminates and is cognizant of something which is.
... the friendship of worthless people has a bad effect (because they take part, unstable as they are, in worthless pursuits, and actually become bad through each other's influence). But the friendship of the good is good, and increases in goodness because of their association. They seem even to become better men by exercising their friendship and improving each other; for the traits that they admire in each other get transferred to themselves.
Now the goodness that we have to consider is clearly human goodness, since the good or happiness which we set out to seek was human good and human happiness. But human goodness means in our view excellence of soul, not excellence of body.