There should be no ambiguity as regards others’ merits and failures. Otherwise, people will become slack and cease to strive to advance.
However, favours done for others and grudges held against others should not be too clear-cut. Otherwise, people will shy away from you.
功过不容少混，混则人怀惰堕之心；恩仇不可太明，明则人起携贰之志。
Notes
Clarity in merit/demerit establishes order and motivation—obscuring them destroys fairness and invites apathy.
Ambiguity in personal debts/grudges preserves unity—over-defining these private emotions provokes opposition and fractures trust.
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