I feel that the morality system needs a bit of revamp.
Under the Notes menu in the Dev Team letter - "Morality attributes affects the attitude of NPCs towards her." - It is solely how the NPCs view your character.
Morality in this game works like a wanted-level system of sorts. The problem with this is that when you do a crime, everyone knows it was YOU. Even if you were sneaking the entire time, even if no one saw you do it.
Guard / Civilian / Any person; back is turned to me, they can't see me, I knock them out, and my morality goes down. This is how morality works in-game. So, if I knock a guard unconscious, my morality goes down. This applies to civilians as well.
Sorry about posting so much in such a short time. I started playing the game again recently and noticed things that irked me a bit.