What is the word that describes ethical smartness?
Intelligence can be used as a means to deceive and exploit vulnerable people. I believe, however, that proper thinking should always lead to righteous deeds.
What is the word that describes the intellectual ability which produces only virtuous acts?
Solution 1:
Wisdom:
the quality or state of being wise; knowledge of what is true or right coupled with just judgment as to action;
Solution 2:
Acumen might work. The definition is "The ability to make good judgments and quick decisions, typically in a particular domain: "business acumen"."
Or discernment, which is 1. The act or process of exhibiting keen insight and good judgment. 2. Keenness of insight and judgment.
Both of these mention "good judgment," which is not exactly the same as producing only virtuous acts, but it is close.
Solution 3:
Ethical itself is used in several senses, two of which cover the meaning you are looking for:
ethical
adjective
1 of or relating to moral principles or the branch of knowledge dealing with these: ethical issues in nursing | ethical churchgoing men.
• morally good or correct: can a profitable business be ethical?
• avoiding activities or organizations that do harm to people or the environment: an expert on ethical investment | switching to more ethical products | adopt ethical shopping habits | ethical holidays.
NOAD
Solution 4:
From OED:
right-minded, a.
1 Having a mind naturally inclined or disposed towards what is right. Also transf.
Hence right-mindedness.