If you would govern a state of a thousand chariots (a small-to-middle-size state), you must pay strict attention to business, be true to your word, be economical in expenditure and love the people.
How great is the path proper to the Sage! Like overflowing water, it sends forth and nourishes all things, and rises up to the height of heaven. All-complete is its greatness! It embraces the three hundred rules of ceremony, and the three thousand rules of demeanor. It waits for the proper man, and then it is trodden. Hence it is said, 'Only by perfect virtue can the perfect path, in all its courses, be made a fact.'
If the people are governed by laws and punishment is used to maintain order, they will try to avoid the punishment but have no sense of shame. If they are governed by virtue and rules of propriety are used to maintain order, they will have a sense of shame and will become good as well.
When you meet someone better than yourself, turn your thoughts to becoming his equal. When you meet someone not as good as you are, look within and examine your own self.