The fourth stage in Kohlberg's theory of moral development. Moral judgments are based on understanding the social order, law, justice, and duty. postconventional reasoning: The highest level in Kohlberg's theory of moral development. At this level, the individual recognizes alternative moral courses, explores the options, and then decides on a personal moral code. social contract or utility and individual rights: The fifth Kohlberg stage. At this stage, individuals reason that values, rights, and principles undergird or transcend the law. universal ethical principles The sixth and highest stage in Kohlberg's theory of moral development.