The purpose of this paper is to lay the groundwork for why philosophy and values are important in management studies and how they should be integrated. To this end, self-fulfilling prophecy was presented as the theoretical basis from a formal perspective, and the human capabilities approach was presented from a substantive perspective. Since management studies also possess the character of self-fulfilling prophecy—whereby initial perspectives are eventually realized depending on the choice of philosophical foundation—what philosophical foundation one adopts at the outset constitutes an important decision. Furthermore, the human capabilities approach is judged to provide an important theoretical framework that encompasses various topics of recent importance. In this context, the 5P model (Philosophy, Principles, Practices, People, Performance) was presented and its components were explained to demonstrate that management studies are not value-neutral and that philosophy and values matter. First, regarding the philosophical foundation, brief explanations were provided from the perspectives of ontological deliberation, ethical foundations, assumptions about human nature, and epistemological viewpoints. Second, the interactions among Principles-Practices-People in the 5P model are also important because the adoption of practices without principles is likely to result in isomorphism through directionless benchmarking. Moreover, action without principles inevitably loses direction and thus has limitations. Finally, it was proposed that desirable performance in the 5P model possesses characteristics of multidimensionality, incommensurability, and balance. In the following section, two competing paradigms in management studies were distinguished and explained as the human "value creation" perspective and the "human value" creation perspective, and it was explained that recent trends in management studies belong to the latter. The subsequent section explained three conditions necessary for building a sustainable management system while conducting philosophy- and values-based management: (1) top management must play an institution-building role, (2) strategy must also originate from values, and (3) a transformation in people management approaches is necessary. The discussion section addressed the points of contact between management studies and the humanities, followed by a discussion of practical implications and implications for management education.