"Dignity" to me reflects the self-respect you have for yourself. In this case, then, dignity comes from the choices you make for yourself, in terms of how you choose to handle yourself on a daily basis.
We try not to embarrass ourselves, but dignity is more than that. For me it means avoiding gossip: sharing it or listening to it. It means not listening to prejudicial jokes or comments—I will simply walk away. I cannot abide listening to people criticize or make fun of people who are less fortunate, whether it refers to living in poverty, being homeless, being on drugs, having abortions, being overweight, etc. I can only imagine how difficult the lives of others are. In this case, it's in allowing others to have a sense of dignity as well.
And, as Atticus Finch says, until I can spend some time in someone else's skin, how can I judge them? There are exceptions: murderers and pedophiles. I just can't wrap my brain around those kinds of people: I sense the tragedy involved but cannot put myself in those shoes.
For me, this all comes back to dignity...putting my "best foot forward." It means setting examples for youngsters, and letting other adults know what is important to me. I am also religious, so I feel that setting a good example is especially important for that reason.
Finally, dignity means you don't always have to have the last word. Sticks and stones...Honestly, if I feel I am right, I have a hard time just walking away. But dignity includes having enough self-respect and belief in being on the right path, that it shouldn't matter if I have the last word. (Working on that...)
Dignity should not mean being a snob. To me, it's more about the choices I make, and those choices don't have to be the choices of others. I can only be responsible for me.