Rewards and punishments are important means of regulating people’s behavior. In ancient times, it was believed that both heaven and terrestrial rulers could implement rewards and punishments. The implementation of rewards and punishments is based on people’s desire to seek benefits and avoid harm. Rewards bring benefits, while punishments bring harm. Therefore, people usually seek rewards and avoid punishments. If rewards and punishments are applied according to clear and fixed standards, with rewards given for conforming behavior and punishments given for non-conforming behavior, people will follow these standards and regulate their behavior accordingly. However, if there are no clear and fixed standards or if rewards and punishments are misused, disorder may arise in people’s behavior and social order.

The commandments of the former kings state that heaven rewards the virtuous and punishes wrongdoings. Therefore, when we establish a nation, we should not deviate from the standards, nor should we indulge in laziness and debauchery. Each person should abide by the laws in order to receive the blessings of heaven. (Discourses on Governance of the States)

The term “two kinds of power” refers to punishments and honors. What is meant by punishments and honors? The answer is: the death penalty is a form of punishment and reward is a form of honor. Officials fear punishments and seek honors. When a sovereign ruler exercises these two powers, his officials will undoubtedly fear punishments and seek honors. (Hanfeizi)