Morale: Each unit has a Morale rating (1) and Loss Resilience (2) to determine how hard the unit will fight and when it will break. See tooltip (3) for detailed morale information.
Morale affects affect a unit’s morale positively or negatively over time. When negative effects outweigh positive ones, the unit will start losing morale. Units low on morale may. Start falling back on their own. If morale drops too low, the unit will break and rout. All the active morale effects are also shown under Situation (4) in the unit panel.
Loss Resilience (2) determines how many casualties the men can bear before panicking. Resilience to losses will be higher when the unit is experienced, well trained, and the commander (5) has a good leadership rating. Once too many losses are suffered, the unit will instantly break even if morale -otherwise seems intact. Units with too high casualties cannot be rallied.
In campaign battles, starting morale is derived from the campaign: if your army is low on morale when entering the battle in the campaign, it will remain so during the battle, making it more fragile. You should watch the starting morale carefully, as it may determine how you can fight.
To boost your units’ morale, be sure to have them supported with secured flanks. Presence and… rallying of good commanders will hold morale high, as will good use of terrain cover. When your units suffer from morale shocks, the effects accumulate with ‘time. The longer the effects are in place, the more likely the unit will eventually break. This is especially true with incoming artillery fire, flanking fire, and fast-mounting casualties. Experienced units (6) are more resistant to negative morale effects and shocks.