The term has two different meanings. One is an individual’sfine moral character, or his proper conduct in society. At firstde(德) was only related to an individual’s behavior, referring to his external moral conduct. Later, it also referred to something that combined external behavior with internal emotions and moral consciousness. The other meaning ofderefers to the special laws and features obtained from Dao, or the physical manifestation of hidden and formless Dao, as well as the internal basis for the origination and existence of all things.

Citations

Heaven gives birth to people. provides them with goods and materials, and subjects them to rules. People obey universal rules and value virtues. (The Book of Songs)

Dao creates all things under heaven whiledenurtures them. (Laozi)