This peer interaction and social bonding must be placed in the context of social change toward increased workplace participation by parents and the consequent increased parental role expected of schools. The result has been sharing the moral development of children with teachers, and this highlights the importance of the parent-teacher relationship and its effect on the teacher as a leader and a guide. Moral development is also affected by school practices, such as tracking and mainstreaming. Social changes that affect peer group interaction are discussed, as are ways in which schools can positively influence and channel such group formation. Three recommendations are offered: (1) Tracking should be eliminated; (2) Schools should decrease in size in order to facilitate the development of heterogeneous peer groups to share classes and activities; and (3) All adults in schools should assume a more active role as leaders and guides. 45 references and 2 notes