Right now Peter is telling Larry that he is trash and he is also punching him in the face and so Phil has to IDENTIFY HIS VALUES of what he believes and what he thinks was important which is that this isn't okay.
In this scene Peter is pushing Larry to the ground and over in the other corner Phil is witnessing what is happening to Larry and Phil has DECIDED to step up to Peter and stop the bullying
Don't Bully Larry Because it's not nice and he could get hurt.
Phil is talking to Peter and stopped him from bullying Larry so Larry didn't get hurt. This is the best decision that Phil could make and Peter learned not to bully. Phil EVALUATED and learned if this happened again then he would make the same decision as this time.