In Fable 3 for the Xbox 360, several legendary weapons require you to decrease your moral standing in order to unlock certain abilities. There are several different ways to do this.
1. Kill Villagers – Killing villagers is one of the easier ways to decrease your moral standings, since this is a very evil action
2. Steal – If you have the theft pack from the Road to Rule, you can steal property from villagers, but this isn’t frowned upon as much as killing
3. Make Evil Decions – As the ruler of Albion, you’ll be confronted with decisions quite frequently that are either evil or good, and choosing the evil side will generally make you hated and give you more money
4. Eat Crunchy Chicks – Find a vendor that sells Crunchy Chicks and eat them to easily decrease your moral standing, since apparently Albion frowns upon eating the head off of a live baby chicken