This teaching manual is the second in a series designed for use in bilingual/bicultural programs. This manual outlines some features of culturally democratic educational environments and illustrates ways in which the schools can take positive steps to assure that every child can preserve pride and loyalty toward the culture represented by his family and community. Examples are given of the conflicts that children can experience when schools undermine cultural loyalties, and their consequences, e.g., tensions between parents and children; alienation of children from the school, teachers, and peer groups; and antagonism between school and community. In spite of the diversity in values, there are recurrent themes in what is taken seriously and emphasized in most Mexican American communities. These fall into the categories of identification with family, community, and ethnic group; personalization of interpersonal relationships; status and role definition in family and community; and Mexican Catholic ideology. The manual examines these value areas in detail, and offers a 10-point set of guidelines suggesting ways to create educational environments in which Mexican-American values are afforded dignity and respect. (Author/AM)