Lets say some bandits keep attacking and robbing the village, and you can choose to save the village, don't do anything, help the bandits.
If you choose to help the village, you do not get a rewards, village stays the same, and you gain good karma.
If you decide to do nothing, village will lose population, buildings will become old , everything will be dirty and poor.
If you decide to help the bandits, you will get tons of items and gold, and village will be completly destroyed, you will get negative karma.