People who are neutral with respect to good and evil have compunctions against killing the innocent but lack the commitment to make sacrifices to protect or help others. Neutral people are committed to others by personal relationships. A neutral person may sacrifice himself to protect his family or even his homeland, but he would not do so for strangers who are not related to him.
Animals and other creatures incapable of moral action are neutral rather than good or evil. Even deadly vipers and tigers that eat people are neutral because they lack the capacity for morally right or wrong behavior. Someone who is neutral with respect to law and chaos has a normal respect for authority and feels neither a compulsion to obey nor a compulsion to rebel. She is honest but can be tempted into lying or deceiving others.
Animals and other creatures incapable of moral action are neutral. Dogs may be obedient and cats free-spirited, but they do not have the moral capacity to be truly lawful or chaotic.