Moral Shame. When we look back on our life, we begin to see some of the actions, speech and thoughts that caused harm for ourselves and others and we have Moral Shame towards them. Moral Shame is different to guilt. Moral shame recognizes the ignorance in the mind of the person who did that at that time, but also does not freeze that person into that moment of time. It understands that that person was ignorant at that moment and has compassion for them.
Then Moral Dread comes in, it makes a determination to try to avoid doing that same harmful action, speech or thought again in the future. We realize that we ourselves in this moment are receiving this Dukkha because of a lack of wisdom of the person we were in the past. Through compassion for the person we will become, we don't want that person to have to receive the results of unwise actions we are doing in the present. So this Moral Dread is a type of fear of the Kammic results that the person we will become will have to reap, if we do unskillful actions in the present. It is a wise fear. Knowing that we have received the results of our past unskillful actions in the present, and this is the memory of things that we have done, and we have to go through all this process of having compassion for the person we were, forgiving, etc. Making a resolution to try to avoid doing those same harmful action, speech and thoughts in the future. So we have compassion for the person we are in the present; this is a function of Moral Dread.
They are based in the wisdom, to understand the Law of Cause and Effect, or Kamma.
Moral Shame and Moral Dread are the two virtues that protect the world.