Abstract
<jats:p>In this chapter we propose the integration of the human dignity construct into governance and management models for local development. The objective is to redefine development beyond the traditional economic metrics, incorporating dimensions of sustainability, social justice, and well-being. Although the ESG (Environmental, Social, and Governance) practices represent a progress, conventional managerial models still give priority to profit maximization at the expense of human dignity. Based on Amartya Sen and Nussbaum's approach to capabilities and Habermas's communicative action, a multidimensional framework is presented; it articulates the responsibilities of subnational governments, corporations, and local players in the local development process. It is concluded that local development governance should act as an inducer of actual freedom, transforming the territory into a space of agency and human dignity, where economic progress serves as support for the realization of life in its fullness.</jats:p>