Philanthrocapitalism: How the Rich Can Save the World (Hardcover)

~ (Author), Michael Green (Author)

Editorial Reviews

Review

“A terrific book about how private money can help solve even the most difficult public problems. Philanthrocapitalism is the definitive guide to a new generation of philanthropists who understand innovation and risk-taking, and who will play a crucial part in solving the biggest problems facing the world.”—Mayor Michael Bloomberg

“Everything you need to know about the revolution underway in the world of philanthropy—its potential as well as its challenges. An indispensable book for anyone who cares about helping the world’s four billion poor get a chance to live their dreams.”  —Hernando de Soto, author of The Mystery of Capital

“Without question the best book now available on the global explosion of philanthropy, the new forms of giving and volunteering, and the many variations of social entrepreneurship. Indeed, it is the only book that provides a comprehensive, worldwide view of this new age of charity. In reader-friendly prose, notable not only for its felicity but also for its lack of jargon, Bishop and Green document the state-of-the-art practices with which the flood of philanthropic dollars is being turned toward the world’s critical social problems.”—Joel Fleishman, author of The Foundation

“Important. Well-written. Timely. Here in this wonderful book, Matthew Bishop and Michael Green shine a light on sparkling examples of effective philanthropy, and how some of the most accomplished people are trying to solve the world's most intractable problems. A superb portrait of a vital new force shaping the world today, Philanthrocapitalism deserves to be widely read.”—Jim Collins, author of Good to Great 

“Matthew Bishop’s and Michael Green’s stunning book provides keen and penetrating insights into the growing significance of the new philanthropists and their commitment to use their wealth to change the world and deploy their wealth with capitalistic rigor. It is a must read for anyone searching for creative approaches to solving the world’s problems.”—Bill George, author of True North and former chair & CEO of Medtronic

Product Description

An examination of how today’s leading philanthropists are revolutionizing the field, using new methods to have a vastly greater impact on the world.

 

For philanthropists of the past, charity was often a matter of simply giving money away. For the philanthrocapitalists – the new generation of billionaires who are reshaping the way they give – it’s like business. Largely trained in the corporate world, these “social investors” are using big-business-style strategies and expecting results and accountability to match. Bill Gates, the world's richest man, is leading the way: he has promised his entire fortune to finding a cure for the diseases that kill millions of children in the poorest countries in the world.

 

In Philanthrocapitalism, Matthew Bishop and Michael Green examine this new movement and its implications. Proceeding from interviews with some of the most powerful people on the planet—including Gates, Bill Clinton, George Soros, Angelina Jolie, and Bono, among others—they show how a web of wealthy, motivated donors has set out to change the world. Their results will have huge implications: In a climate resistant to government spending on social causes, their focused donations may be the greatest force for societal change in our world, and a source of political controversy.

Combining on-the-ground anecdotes, expert analysis, and up-close profiles of the wealthy and powerful, this is a fascinating look at a small group of people who will change an enormous number of lives.

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Product Details

• Hardcover: 298 pages
• Publisher: Bloomsbury Press; 1 edition (September 30, 2008)
• Language: English
• ISBN-10: 1596913746
• ISBN-13: 978-1596913745
• Product Dimensions: 9.3 x 6.4 x 1.2 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon.com Sales Rank: #28,560 in Books (See Bestsellers in Books)

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  #28 in	Books > Business & Investing > Business Life > Ethics

Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Clearing the Windshield about Social Investing, January 4, 2009

By	Don Tapscott (Toronto, ON Canada) - See all my reviews (REAL NAME)

I'm generally disappointed by business, and for that matter non-fiction books. It's rare to get a fresh idea, let alone one that is argued well. I've followed Mathew Bishop's work over the years was was excited to learn he had a new book. But I confess to some skepticism when I saw he had co-authored a book with a subtitle "How the Rich Can Save the World." When I look at the problems facing the world it seems to me that the rich, more than any other group have messed it up. And what a mess we have.

However, Philanthrocapitalism is a great book, and I can't think of any category of educated person who should not read it. For starters there is a lot of mud on the windshield when it comes to social investing, venture philanthrophy, philanthropreneurship, social innovation, social entrepreneurship and the like. The book provides a vivid and reach exposure to how wealth is increasingly being applied to improve the state of the world. I learned about the ecosystems of social investing, and was stunned to learn what's actually happening in this area.

For some time there has been the expression among the Corporate Social Responsibility community "You do well by doing good." I don't think this has been true. Many companies have done well by being awful - by having terrible labor practices, bad products bolstered by good advertising, externalizing costs (such as industrial emissions) on society and the like. However increasingly in the age of transparency everyone is being held to higher standards. And a new generation of people with wealth are beginning to understand that you can't succeed in a world that is failing.
And what a great read. Every single chapter was packed with interesting stories about the players who are making this happen.

I expect the book will be widely read, and so it should. But my greatest hope is that people with wealth will read it and follow the lead of their most progressive peers. How ironic, should the rich actually end up being key to making this smaller world our children inherit a better and more sustainable one?

Don Tapscott, author Grown Up Digital, Wikinomics, The Naked Corporation and other books.

2 of 2 people found the following review helpful:

5.0 out of 5 stars Investing in Human Kind, December 24, 2008

By	H. Sirkin (Chicago, IL: USA) - See all my reviews (REAL NAME)

In this time of recession and government spending cuts, charitable organizations and medical, scientific and social research are under severe pressure to curtail their efforts. But thanks to the return-oriented support of the ultrawealthy, these programs can in many cases continue their critical work. Bishop and Green trace the history of philanthrocapitalism and focus on its implications for modern society. With their emphasis on key players like the Rockefeller Foundation, Warren Buffett and Bill Gates ("Billanthropy"), Bishop and Green provide a clear perspective on how the ultrarich are playing an increasingly important role in making investments--rather than just donations--to solve problems that will transform the lives of humankind. This book is a must-read for anyone wanting to understand the future of philanthropy.

2 of 5 people found the following review helpful:

5.0 out of 5 stars I don't know about saving the world, but they can help a lot, November 10, 2008

By	Dennis Littrell (SoCal) - See all my reviews (TOP 50 REVIEWER)    (REAL NAME)    (COMMUNITY FORUM 04)

Throughout most of human history the rich have used their money to make more money and, quite frankly, they have often done so at the expense of those without much. This has always been considered the way things are: the rich get richer and the poor get...well, you supply your own line. However in this, the age of the super rich, things are changing; and in this engagingly written book, Matthew Bishop, the New York bureau chief of the Economist, and Michael Green an economist on leave from the UK's Department for International Development, chronicle this change, and give us a look at what we can expect in the future.

The authors begin with a little history of philanthropy as they focus on some of the giants of contemporary philanthropy, most notably Bill Gates and Warren Buffet. These are men who have acquired such a staggering amount of money that it would be irresponsible to leave it all to their relatives or friends. The understanding is that when you have as much money as these guys have--literally billions of dollars--you have an obligation to use that money and the power derived from it for the betterment of humanity. Or at least that is the new way of thinking as this book clearly shows. Even corporate giants like the much criticized Wal-Mart have gotten into what the authors call "The Spirit of Philanthrocapitalism." Consider these words from Lee Scott, Wal-Mart's chief executive:

"What would it take for Wal-Mart to be...at our best all the time? What if we used our size and our resources to make this country and this earth an even better place for all of us: our customers, associates, our children, and generations unborn?...Is this consistent with our business model?" (p. 187)

Considering that corporations in this age of globalization are thought by some to be very much the problem and not the solution to humankind's challenges--see, for example, The Corporation: The Pathological Pursuit of Profit and Power (2004) by Joel Bakan--this is a refreshing point of view. And it makes sense when you think about it. Bill Gates and Warren Buffet now spend most of their time redistributing their wealth. Such work is more than a full time job; it's a new career. What if the heads of corporations realized the social and moral responsibility they have incurred by their very success, not through the persons of their retired executives, but through their present day business models?

Bishop and Green devote a chapter to the ideal of "The Good Company." It's obvious that they would like to see corporations do more, especially considering the great challenges that we currently face in terms of pollution, water depletion, global warming, food shortages, corrupt governments, etc. Google comes in for a bit of critical scrutiny from Bishop and Green who believe that the giant multinationals should go beyond the façade of good public relations to the wisdom of enlightened self-interest. They quote Klaus Schwab, founder of the World Economic Forum, as saying, "global corporate citizenship can be considered a long-term investment. Since companies depend on global development, which in turn relies on stability and increased prosperity, it is in their direct interest to help improve the state of the world." Unfortunately, Schwab further notes that "the pursuit of short-term profits at the expense of the long-term best interests of the firm may lead to 'corporate attention disorder,' whereby companies lose focus on the big picture." (p. 181)

The big picture of course is sustainability of your advantageous position in the world economy. I see on television night after night examples of how some companies think they can manage that with slick advertizing. Oil companies present commercials in which they urge people to use less energy. You might ask why they do that until you realize that the commercials have nothing to do with cutting energy use, but everything to do with promoting a positive public image for their company. This is NOT the way to assume social and moral responsibility, especially by companies that are not paying the full environmental costs of doing business while they garner record company profits.

I think in essence this is what this book is about on the deepest level: an attempt to demonstrate through the example of philanthrocapitalism a way for the corporation of the future to become a trusted and valuable member of the world society irrespective of whatever product or service they produce or perform. A corporation should be something more that an amoral entity blind to everything but its bottom line. What profits do the leaders of these giants have when they realize, soon or late, that they will leave this world, as everyone else does, the same way they came in?

Citing examples set by the Gates Foundation, George Soros's Open Society Institute, the Carnegie Corporation and others, the authors are plainly urging those with the wherewithal to take a leadership role in shaping society by funding not just established charities but through the founding and funding other worthwhile projects including those dedicated to educational reforms, disease eradication, and scientific research. They also want the philanthropists of today to influence others not involved in charity to work for the common good. They quote Bill Gates as saying insightfully, "Go get 0.1 percent of the scientists working on erectile dysfunction to come and work on malaria and you will be making a huge contribution." (p. 51)

So, perhaps more than anything, the authors are showing how today's great philanthropists are using their celebrity and their prestige as well as their cash to help make this a better world. Let's hope more of them get involved.