Living in service of human progress

Marcello Palazzi on purpose, conviction and the future we choose

Few people have asked themselves the question “What does human progress truly mean?” as consistently - and acted on it as boldly - as Marcello Palazzi. A serial entrepreneur with over 30 ventures to his name, he moves with ease between spiritual visionaries and business leaders, while shaping policy across continents. As the co-founder of the B Corp movement in Europe and initiator of numerous global initiatives for civic economy, his life’s work is rooted in a single driving belief: that entrepreneurship, when aligned with ethics and purpose, is one of the most powerful forces for good.

In this wide-ranging conversation, Marcello shares the ideas, values, and moments that shaped his path. From early experiences with environmental degradation to timeless inspirations like the Dalai Lama, Desmond Tutu, and Aristotle. What emerges is a deeply human story - one of conviction, reflection, and a call for a new kind of leadership fit for our time.

Awakening to the tension between ethics and economics

Born into a family of entrepreneurs, Marcello was raised in an environment that instilled a core belief: that innovators possess the unique superpower to imagine and build solutions where none yet exist. At just 23, he co-founded an environmental diagnostics company with his father, offering testing kits for water and soil. It was through this early venture that he quickly became aware of the darker side of economic activity. “We soon saw the mounting environmental destruction with polluted rivers and chemical spillages in the soil.”

This awareness was further reinforced during Marcello’s economics studies in London. “I came to realise that economics, as it was taught, lacked ethics and values. It was presented as a neutral science, but that didn’t resonate with me. I believed - and still do - that as human beings, we must live ethically and with values. In that sense, there should be no difference between medicine, law, or economics.” These early realisations planted the seeds for Marcello’s lifelong dedication to align innovation, entrepreneurship and human values in service of the greater good.

“My life direction came partly from the environment that I grew up in, and partly from my own reflection. As a student, I felt this was my path. Conviction and coherence helped me stay on it.”

The insatiability of society

What sets Marcello apart is his sustained awareness of the friction between human values and economics. “After studying at Harvard University, many of my peers went into business to earn a lot of money - only to begin thinking about society in their fifties. I was always conscious of the bigger picture.”

“People quickly lose sight of what they once believed was the right course. That, in many ways, is why we have the economic and social systems we do today.”

Marcello describes that since the economic booms of the 1970s, we’ve entered a cycle of great accumulation - and with it, a distorted view of wealth and success. “As a society, we have become insatiable. Like the myth of King Midas - he turned everything he touched into gold, but you can’t eat gold. Eventually, he died from hunger. We never seem to know when enough is enough. This opposes what is thought in every spiritual tradition about the value of contentment, especially when it comes to material wealth.”

The insatiability of society creates two major problems, according to Marcello. “First, an environmental one - we’re producing and consuming far beyond the planet’s boundaries. Second, a spiritual one - the more we focus on material wealth, the more it blocks us from seeing a higher purpose in life – as described well in late Pope Francis’ book Dilexit Nos. True happiness begins when we move away from the ego and toward connection.”

Unlocking potential to make a dent in the universe

What we ultimately need - according to Marcello - is the understanding that the path we’re on is a dead end, leading to self-destruction. We’re facing massive challenges: climate change, biodiversity loss, water scarcity, resource-driven conflict, and the forced migration of tens of millions of people. This is a pivotal moment in human history. For centuries, if things got difficult, people could move elsewhere. But today, with 8 billion people, there’s nowhere else to go.” And things got worse since the US elections.

“In recent months, the world has changed dramatically. Too many leaders have bowed their heads and gone with the flow, instead of standing up for their values.”

Amidst all these challenges, Marcello is most struck by the upside: “We’ve never had more creativity, knowledge, intelligence, and resources than we do today. We could do all the things we aspire to. But we are held back by inertia, vested interests and insatiability. Ideally, economic activities should be about creating solutions, expressing creativity, or - as Steve Jobs (Apple Founder) said - "making a dent in the universe."

A shift towards conscious creations

Marcello draws hope from the belief by Desmond Tutu and Martin Luther King that, “The arc of the moral universe bends toward justice” – meaning that, over time, despite setbacks, humanity gradually moves toward fairness and moral progress. “Humanity has an instinct for survival and the power to change direction is in our hands. If every person made even a small difference, we’d be living in a completely different world.”

The way forward lays in innovation and technology, says Marcello. But, with the important distinction that we need to give it a direction. “We need social innovation, new governance models, and a rethinking of how we practice democracy. We must learn to innovate in a way that’s sustainable and regenerative. Look at Bhutan, Costa Rica or Scandinavia, that have shown it’s possible to balance economic growth with social welfare and ecological limits. There are enough success stories. The point is to innovate and create with a new consciousness - one that knows when enough is enough.”

“We can still grow - in knowledge, education, the arts, and well-being - without filling the world with more stuff. That’s the kind of growth shift we need.”

Finally, Marcello sees the solution in mobilising people that are already aware of what’s needed. “I see signs of awakening - especially in younger generations. People like Jan Rotmans (sustainability & transitions expert) speak of the “undercurrent,” that deeper shift happening beneath the surface. Younger people seem less fixated on material consumption and more attuned to the planet.”

“We need more young people in positions of influence, especially in corporate boards. Their awareness of the ecological crisis and desire for change are crucial.”

Operating at the highest level of responsibility

Marcello sees entrepreneurship as an important way to find solutions for the problems of mankind. “While this energy isn’t always directed toward the right purposes, many entrepreneurs are making a positive impact in the world.” Luckily, Marcello didn’t stop with just creating a vision. He initiated global movements that would influence the moral compass of thousands of companies – small and large - towards purposeful practice. A true demonstration of impact.

“In 1993, I started the first Social Venture Network in Europe: a community of socially responsible business leaders. This included people like Peter Blom of Triodos Bank, Ben Cohen of Ben & Jerry’s, and Yvon Chouinard of Patagonia. Within our network, we had developed a collection of best practices for sustainable business. These included 350 best practices drawn from companies like Unilever, Danone, and IKEA.”

In 2013, an old friend from Argentina, Pedro Tarak - who had started the B Corp movement in South America - invited Marcello to connect with B Lab in the US. “They knew about my activities in the realm of moral entrepreneurship and asked me to setup B Corps in Europe, which I did. To me, B Corp came to represent not just standards, but an underlying philosophy of how business can operate at the highest level of responsibility.”

“Entrepreneurship is about seeing opportunities that enhance wellbeing and strengthen society. For me, universal values and entrepreneurship are inseparable.”

The success of B Labs Europe is unprecedented. “In our first year we had about 50 B Corps. Over the following ten years, I must have seen 300 companies joining, including Triodos, Fairphone and Tony’s Chocolonely. Today, there are more than 5,000 B Corps in Europe, split about evenly between the EU and the UK.” The weight of this achievement cannot be overstated, knowing that all these companies today meet the highest standards of social and environmental performance, transparency, and accountability – each a true force for good.

Staying rooted in universal values

Such exceptional achievements can only be driven by someone with a deep conviction. For Marcello, that conviction is grounded in a set of core values he carries with him every day. As he explains, Kim Polman’s concept of the Golden Rule - ‘Treat others and the planet as you would wish to be treated’ – is a great example. “Such core values are present in all religions and ethical systems. The African philosophy of Ubuntu - “I am because we are” - also speaks to this: we are fundamentally connected as human beings, striving to live in harmony. That’s the starting point of being human and my starting point as well.”

Ten years ago, Marcello wrote an essay at Harvard that distilled the values that became a touchstone for his further life. “It focused on what I called the existential trilogy: Goodness, Beauty, and Truthfulness.”

“These three values now guide me every day. I ask myself: Am I doing this in the name of goodness, beauty, and truth - or not? It’s a simple question, but a powerful one.”

“Goodness is about doing what you believe is right for the world. Of course, people may have different perceptions of what is "good," but I believe there are universal values that unite us as human beings. Beauty is the capacity to be in awe of creation - of nature, of the planet, of human beings. Deep down, most people can sense beauty when they see it. Truthfulness speaks for itself and has become especially important in the age of AI and disinformation.”

Marcello is not only critically aware of his core values, but he is also clear about his guiding mission: “Human progress through entrepreneurship. For me, it’s about having a sense of vision, a sense of destination - something that moves us forward as a society and as humanity. It may sound simple, but if you ask yourself that question - what is human progress? - just once a day, that’s enough to stay on the right track.”

Reaching out to inspiring people

The life work of Marcello’s would not have been possible without drawing from deep wells of inspiration. One habit for finding inspiration stands out - the lifelong learning from global thinkers and leaders – many of whom have become acquaintances or friends of Marcello.

“I’ve been inspired and reinforced by the people I’ve sought out. In 1993, I wrote a letter to Muhammad Yunus (Bangladeshi social entrepreneur, economist, and Nobel Peace Prize laureate) by fax. He replied immediately, and we’ve been in contact ever since. He showed me a deeply purposeful way to use the economy for social wellbeing, also believing in the power of female entrepreneurship and micro-finance.”

Other people who inspired me include Paul Polman (Former CEO Unilever), Ray Anderson (Interface Founder), Yvon Chouinard, and Anita Roddick (Body Shop Founder). I sought out these voices on purpose - and learned from them. What I do comes from a combination of my real passion - finding people who are doing good things for the world - and my own love for the arts and nature. And, of course, that inner spark to create and act.”

“If you actively seek out people who inspire you, things start to happen. Paths open.”

“One of them is Satish Kumar, the wise Indian thinker and former monk. He wrote Path Without Destination. That idea has stayed with me. It’s not about the objective or the end point - it’s about remaining open to the path. Over the years, I’ve also done quite a bit of work with the Dalai Lama. He has authored a book on The education of the heart - and it struck a deep chord with me. Our education systems, by and large, leave no room for cultivating the heart. What we have today is the opposite of a holistic system: narrow, fragmented and often reductive.”

Another inspirator is Allan Bloom, who wrote The Closing of the American Mind, pointing to a deep narrowing of human development. “And it’s true. We’ve lost sight of a basic question: what does it mean to be human? Especially now, in an age of artificial intelligence, robots, and a digital world, we need to ask that question again - with urgency.”

"Can AI be human? I don’t think so. Because being human isn’t just about cognition. It’s about intuition, the heart, the senses. These are essential to our wholeness.”

Living and working with more consciousness

Embracing our wholeness is a cornerstone of Marcello’s vision for the future. “Many young people in schools and universities sense this, but it’s not enough to evolve our civilisation. In Nature and the Human Soul - Bill Plotkin writes about the idea that a nation or civilisation can evolve to a higher level of consciousness. But our current systems are far behind. The quest for power and money blocks us from expressing our whole being and cut us off our deeper values.”

A conversation Marcello had with Jeffrey Sachs (Economics Professor at Columbia University), further demonstrates what he means. Talking about the social contribution of businesses, Sachs proposed to ask one key question: What do these companies produce? “If you’re making tobacco or nuclear weapons, there’s something deeply wrong. The opposite is also true. If you engage in economic activities that are purposeful and positive, you stay centred.”

“If the work you do every day isn’t aligned with your values, no amount of meditation or yoga is going to bring you peace. You’ll feel split. One part of you wants to save the planet, and the other is busy fuelling the system that’s destroying it.”

“Dutch historian and author Rutger Bregman therefore asks the question What do you do with your life? in his works and public talks. Especially in the context of meaning, purpose, and contributing to a better world. There’s also Harvard Professor Clayton Christensen who wrote How Will You Measure Your Life? The central message is that true success comes from aligning your life with your deepest values - investing in relationships, integrity and purpose - rather than just career achievement or wealth.”

Marcello lives according to this wisdom, and gets clarity and awareness by working from home half the time. “The home environment is more human, more holistic. Becoming a parent is also profoundly humanising - it helps make you more complete.” Besides that, nature plays a central role for Marcello. “I spend a lot of time outdoors. And I try to cultivate some discipline - not in a strict or militaristic way, but in the sense of having regular practices: meditating, walking in nature, reading something that inspires me. I read a lot. People like the Dalai Lama and Desmond Tutu offer deep sources of guidance and grounding.”

Asking the real questions

Marcello has clear advice for current and future leaders. “Ten years ago, I took part in Harvard’s Advanced Leadership Initiative. Many so-called successful people there said, I’ve made a lot of money - now I can do good things with my life. That’s better than nothing. But the real power lies in starting early - by asking yourself: What does success mean to me?

“We’ve created a world that is, in many ways, too narrow in focus and in thinking. My perspective has always been more holistic. I believe we need to cultivate multiple dimensions of what it means to be human - not just the intellect.”

Another vital piece of advice is to cultivate more consciousness. “Our society has overly prioritised rationality. We've elevated the intellect while neglecting the heart and intuition. It's time to restore the balance. If every leader spent just 15 minutes a day reflecting - on what their organisation truly contributes to society, or on the direction their decisions are taking us - things would begin to shift. In Bhutan, for example, if you want to become a minister, you are encouraged to first spend time in a monastery. That kind of cultivation of the heart and the whole self - that’s what I believe in.”

One final thing Marcello would like to share is: “We are living in a pivotal moment in human history. The work of scientists like Johan Rockström (professor in environmental science) has shown us clearly: we are hitting our planetary boundaries. If we don’t make deep structural and conscious changes in the next 5 to 10 years, we risk irreversible damage. It’s not just about us - it’s about what we leave behind for the next generation.”

There’s one key consideration, that we need to keep at heart, says Marcello. It’s a quote by Clayton Christensen (best known for his theory of disruptive innovation): “At the end of your life, the person you became will meet the person you could have been.” It’s a call to live intentionally, to make choices guided not just by success or ambition, but by meaning, integrity, and personal growth. “That question - How do you measure your life? - is one we should all be asking, now more than ever.”