My son, age 36 is unmedicated and alway has been. In my opinion, your question is a tricky one.
If my son is in an episode, and by this I mean if he is suffering a total break from reality, he can feel quite justified in his behaviors. Whatever delusion he is caught up in, he totally believes the delusion and his behavior makes sense to him. My son calls the police on people because he actually believes he is being mistreated. When he is yelling at no one, he believes he is yelling at someone with good reason.
While his psychosis is a constant part of his life, when he isn’t overwhelmed by it, he can follow rules - unless there is a delusion involved. The older he gets, the more problems he has with his delusions.
My son has a sense of right and wrong, he just usually sees himself as the one being wronged. His delusions have a great deal of control over his behaviors.
I have noticed that if its something my son really wants, it does seem like he is more careful about adhering to rules.
As Nick, the Peer to Peer instructor (with scz) said whenever he tried to explain something about scz that was difficult to explain, “its tricky”.