Enlightened Management was developed by Philip Kotler and Gabriele Carboni as a response to the growing disconnect between economic progress and societal well-being. Rooted in Civil Economy (Zamagni, Bruni, Becchetti), Stakeholder Theory (Freeman, 1984), and Sustainability Management, it redefines management as a moral and relational act. It draws inspiration from Drucker’s notion of management as a social function, from Sisodia’s Firms of Endearment, and from Kotler’s Marketing 3.0, evolving these ideas into a comprehensive framework for responsible growth in the 21st century.

Enlightened Management envisions the enterprise as a living ecosystem in which economic, human, and ecological dimensions coexist in equilibrium. It proposes a model of leadership and governance grounded in integrity, collaboration, and generativity—where doing good and doing well are inseparable.

At its core, Enlightened Management is based on the P³ Formula: People × Purpose × Planet = Prosperity

This equation expresses the belief that true prosperity arises when organizations place people and the planet at the center of their purpose. Profit becomes the consequence of ethical and sustainable value creation.

The Enlightened Manager acts as a catalyst for this transformation, embodying six guiding principles:

1. Valuing people beyond profit – recognizing human potential as the primary source of collective success.

2. Adopting responsible and horizontal leadership – fostering autonomy, collaboration, and shared accountability.

3. Pursuing a wider vision – aligning business objectives with positive social and environmental impact.

4. Using technology ethically – ensuring that AI and innovation serve humanity and sustainability.

5. Living according to the principles of Enlightened Management – integrating ethics, purpose, and empathy into daily decisions.

6. Acting as an agent of generative change – transforming organizations into forces for the common good.

This management paradigm replaces the hierarchical, profit-maximizing logic with a horizontal and participatory model that distributes leadership across three interdependent roles:

• Leaders (Pioneers) – envision and guide the future.

• Owners (Stewards) – sustain the present through responsible management.

• Followers (Contributors) – implement and improve the past through action and feedback.

Together, these roles form a living, circular system of leadership, where every individual contributes to collective prosperity.

SMEs that adopt Enlightened Management—such as Italian family-owned firms transitioning to benefit corporations—achieve both resilience and purpose-driven innovation. By embracing shared leadership and ethical technology use, they improve employee engagement, reputation, and long-term sustainability.