According to Kohlberg's theory of moral development, the children are most likely at the social systems morality stage of moral development.
Kolhberg’s theory of moral development states that we progress through three levels of moral thinking that build on our cognitive development. The children are now in the the conventional level, where their sense of morality is tied to personal and societal relationships. In stage 3, children want the approval of others and act in ways to avoid disapproval. Emphasis is placed on good behavior and people being “nice” to others. In stage 4, the child blindly accepts rules and convention because of their importance in maintaining a functioning society. Rules are seen as being the same for everyone, and obeying rules by doing what one is “supposed” to do is seen as valuable and important. If one person violates a law, perhaps everyone would—thus there is an obligation and a duty to uphold laws and rules. Morality here is still predominantly dictated by an outside force.