I see Kobolds somewhat like this:
Kobolds are a primitive, but sapient, species of bipedal canines living in tribal societies. Since every day is a struggle for survival every material good is used for the good of the tribe, and the concept of "personal property" is completely alien to them. As such, they have no concept of "theft" either.
Kobolds live a harsh life, and trust is reserved for member of their own tribe. Once the trust is broken, it can never be regained, and the offending Kobold is driven away from the tribe's territory. Since Kobold tribes do not trust outsiders, and other races certainly do not trust Kobolds, a Kobold has nothing to gain from betraying it's tribe, and the thought would not even occur to most of them.
Kobolds are constantly in danger of death, being despised as vermin by the "higher" races, and this leaves little time for empathy. Kobolds have been known to torture other individuals, often taking great glee in such acts. An interesting note is that Kobolds do not usually think of extracting information in this manner, or of using it to set examples, or to establish dominance.
Kobolds prefer to settle disputes with each other peacefully, though their suspicious nature makes this difficult, and fights are far from uncommon. These fights are rarely to the death; lethal blows would betray the limited trust of the community the Kobold depends upon to survive in a hostile world.
Eh, that's it for now. Thoughts?