Great article:
Morality Begins
"How does morality develop? We often hear that children can distinguish between moral and conventional rules at the age of 2 1/2 ? 3. But how does this happen? How does one learn the difference? Clearly, we are born with a sense of good and bad (as I?ve argued, this is the capacity to feel pleasure and displeasure, and certain objects and situations that cue these feelings), and with the early stages of social neediness. From this, arguably, morality is created. But how?"