I'd say, if you wanted to implement a morale system, do it like Mount and Blade's: As in, the men need good food and frequent, successful action, or else they'll desert or (and I can't recall if this was the case in M&B, but still) be less useful in battle. Puchu's idea works as well, because his idea seems to expand on the system I just described. Also, like Puchu said, trying to implement an honor system would be difficult and probably wouldn't work out, anyway.