Virtue ethics focuses on developing virtuous character traits. Aristotle believed that happiness is achieved through living according to reason and developing virtues like courage, honesty, and justice. He argued that virtues represent a golden mean between extremes of character and that they allow people to function well and live happily in community with others. While virtue ethics emphasizes moral motivation and relationships, it faces challenges in providing guidance in complex situations where virtues may conflict or fail to address all scenarios.