Generally speaking, what do you think is the best way for parents to teach their young children the difference between right and wrong?

By example.

Model the desired behaviour, and entertain no excuses.

I echo what some of the posters say here - lead by example. Also don't dumb down or sugarcoat the severity of consequences. Better to send the kid off into the world well informed with both eyes open than to have them be ignorant and fall into misfortune.

Depends, what works for one parent might not work on another, you lead by example, you can talk, but that might always be the solution, some kids need strong discipline, you just have to use or do whatever you need to do to guide your children.

"Spare the rod spoil the child."

Beatings always worked for me.

When you beat your child, you train him or her to beat your grandchildren.

They first need to define it for themselves.

Here's my take on this, let the child learn it by themselves through the golden rule during their formative years. Always reinforce the notion that if you don't want that done to you, then don't do it to others. I also second what earlier guys said to lead by example. My parents were hardly late for anything, and so was I. But as someone who grew up on capital punishment, it's a bit of a hit or miss for me. You can set people straight through tough love, but you can condition them to give that practice on your grandkids as gkamburoff said. I'm pretty sure that westerners in Japan have seen their fair share of capital punishment in society. I'm Asian and I can attest that a bit of punishment is tolerated, it's bad and I hope we outgrow it.

Most kids already know the difference. How the parent reacts will determine if the behavior continues. Most parents overreact which usually results in a beating. This results in a kid that is constantly pushing boundaries to either get a reaction from the parent or even just to get attention. Try talking to your kids and offer them alternatives.

"Spare the rod spoil the child."

Beatings always worked for me.

Same here.

I recall a couple of times when my Dad blew a fuse and spanked the heck out of me.

I don't blame him for it. He set me right.

The centuries old way. Reward and praise them when they behave and do good things, chastise them when they do bad things.

Example.

Teach them the law of Cause and Effect.

Good deeds get rewards just as bad deeds get consequences