October 16, 2008 | Read Time: 1 minute
NEW BOOKS
Philanthrocapitalism: How the Rich Can Save the World
by Matthew Bishop and Michael Green
Philanthrocapitalists are a new breed of donor who see themselves as investing in society as opposed to giving away money to charity, write Matthew Bishop, New York bureau chief of The Economist, and Michael Green, a former economics professor and manager at the Department for International Development, in London.
As with donors such as Bill Gates, Warren Buffett, and Angelina Jolie, philanthrocapitalists apply business methods to philanthropy. The authors write that such philanthropy is “strategic, market conscious, impact oriented” and “driven by the goal of maximizing the leverage of the donor’s money.” In turn, philanthrocapitalists are different from regular donors in that they sometimes look to create profitable solutions to social problems. For example, Wal-Mart champions environmentalism by cutting costs associated with packaging, which also brings in more profits.
This book explores the history of philanthrocapitalism, which the authors say was touched off by Andrew Carnegie in his 1889 essay “Wealth.” Other chapters discuss celebrity giving and companies that pursue social interests.
The book also explores criticism of philanthrocapitalists, including the charge that by giving away billions of dollars to advance their goals, these philanthropists are creating a plutocracy, a society and political atmosphere ruled by the wealthy. (To read an interview with the authors, see The Chronicle’s October 2 issue and to read a review of this book, see Page 40.)
Publisher: Bloomsbury, 175 Fifth Avenue, Suite 300, New York, N.Y. 10010; (646) 307-5858; http://www.bloomsburyusa.com; 304 pages; $27; ISBN 1-59691-374-6.
