Morality right now doesn't do that much. It mainly affets if you lose or gain mood for killing certain types of enemies. If The higher your morality, the less mood you lose when encountering abominations. You will even start gaining mood once it is high enough.
Low morality will make mood loss from killing humanoids lower and you will start gaining mood once it gets low enough.
Aside from that, you get some minor perks, like lower addiction mood loss and things like that.
You gain or lose mood mainly by killing different enemy types. Killing humanoids lowers it while killing abominations raises it. Using Ichor will lower your morality every week.