To merely have practical intelligence and skill can run the risk of what Aristotle called "cleverness" or "shrewdness" - the ability to accomplish one's goals regardless of the rightness or consequences of those goals themselves.

Aristotle suggests that having the right character puts one on a much better footing. To know the intention of an action is to know its real aim. To act rightly, we need to know the right ends we aim for, the motivation to want those ends (i.e. moral will), and the means to accomplish them (i.e., character virtues). This is practical wisdom.

For social institutions, like the family, the community, businesses, hospitals, governmental organisations, etc., their true aim must be known to function well.

Unhinged from its larger purpose can lead them astray. For example, politicians that vie for po...