Character Allignment is sort of like a Morality system, which restricts users from performing certain actions, but also gives them access to certain actions.
-- If your Rank has "Lawful" Allignment, then it means you are forbidden to kill a member of your Village unless they perform a criminal act.
-- If you are of "Neutral" Allignment, then you are free to kill members of any other Village without reason. Note that your Kage can still punish you for murder of a Ninja from another Village, if they so choose to.
-- And finally, if you are of "Chaotic" Allignment, then you are a true bastard. You may kill who you want, when you want.
The following is a list of the Rankings and the allignments associated with that Rank...
Konoha Genin: Lawful
Konoha Chunin: Lawful
Konoha Jounin: Neutral
Konoha ANBU: Neutral
Hokage: Neutral
Otogakure Genin: Lawful
Otogakure Chunin: Neutral
Otogakure Jounin: Neutral
Otogakure ANBU: Neutral
Otokage: Neutral OR Chaotic
Kirigakure Genin: Neutral
Kirigakure Chunin: Neutral
Kirigakure Jounin: Neutral
Kirigakure ANBU: Neutral
Mizukage: Chaotic
[KUMOGAKURE COMING SOON]
Kumogakure Genin:
Kumogakure Chunin:
Kumogakure Jounin:
Kumogakure ANBU:
Kumokage:
Missing-Nin: Chaotic
Rogue: Chaotic
Akatsuki Member: Chaotic
Akatsuki Informant: Chaotic
Akatsuki Leader: Chaotic
Seven Swordsmen Of The Mist: Neutral
Non-Shinobi: Lawful OR Neutral