Compassion vs. righteousness

Sometimes I wonder where the line is between establishing what is right and just being compassionate and understanding. Here is some insight from Elder Holland:

I know of no more important ability and no greater integrity for us to demonstrate in a world from which we cannot flee than to walk that careful path--taking a moral stand according to what God has declared and the laws He has given but doing it compassionately and with understanding and great charity.

The Call to Be Christlike

http://www.lds.org/ensign/2014/06/the-call-to-be-christlike?lang=eng