To be graceful is to act with elegance and with respect for both oneself and all those around.  Those who truly possess areté have no need to be petty and can withstand an insult without lashing back in return.  Those who are gracious have tact and show courtesy and make things pleasant for others.  Grace is also demonstrated by putting in the extra effort to turn the functional into the beautiful, either through practice or care.  To be gracious requires conscious attention to detail, and careful thought before acting or speaking.  We can be gracious in both the substance and manner of our words and our deeds, and doing so will edify all we come in contact with.

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