Philanthrocapitalism: How the Rich Can Save the World

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.

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.

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 F

This excellent book is the first in-depth account of the new generation of philanthropists who will write the next few chapters of philanthropy. Most of the major new players that are currently coming on stage are covered, with a journalistic ethic of balancing the boosters' claims with the points of the critics. But, the book *is* discussing the voluntary parting of cash from billionaires, so it might be understandable that much of the material is somewhat sympathetic. Enough of the history of philanthropy is woven in to provide the background of past "philanthrocapitalists" like Carnegie and Rockefeller, and demonstrate that financial booms often are followed by a blossoming of giving. Of course, the method of social entrepreneurship is prominently featured. The book concludes with a tongue-in-cheek imagining of a gathering of the senior philanthrocapitalists in 2025 on Richard Branson's mansion in space: the Gates, Jeff Skoll, Oprah Winfrey, Mo Ibrahim, Angelina Jolie and the new U.S. president, Larry Page.

We may all be obsessed with our own financial issues in the current downturn but it is likely to make Warren Buffett even richer in the long term so don't let anyone tell you that philanthrocapitalism dies with the credit crunch. Bishop and Green make this argument powerfully in this impressive dissection of the origins, motivations and likely direction of corporate philanthropy. There are some great stories about the rich and famous - I particularly liked the expletive-ridden exchange between P Diddy and Bill Gates - but this is not an exercise in philanthro-puffery. The authors accept that the chief motivation of many such givers is a lower tax bill. This is a highly-readable, well-crafted exposition of why that shouldn't make a jot of difference.