Philanthrocapitalism by Matthew Bishop and Michael Green

Last updated: Aug 31, 2023

Summary of Philanthrocapitalism by Matthew Bishop and Michael Green

Philanthrocapitalism, written by Matthew Bishop and Michael Green, explores the concept of using business principles and practices to solve social problems. The book argues that traditional philanthropy is not enough to address the complex challenges of the modern world and proposes a new approach that combines the power of capitalism with the compassion of philanthropy.

The authors begin by discussing the history of philanthropy and how it has evolved over time. They highlight the limitations of traditional charity, which often relies on donations and grants to provide short-term relief without addressing the root causes of social issues. Bishop and Green argue that philanthropy needs to be more strategic and results-oriented to create lasting change.

They introduce the concept of philanthrocapitalism, which involves applying business principles such as innovation, accountability, and scalability to philanthropic endeavors. The authors believe that by leveraging the expertise and resources of the business world, philanthropy can become more effective and efficient in tackling social problems.

Throughout the book, Bishop and Green provide numerous examples of successful philanthrocapitalist initiatives. They highlight the work of individuals and organizations who have used their business acumen to make a significant impact in areas such as education, healthcare, and poverty alleviation.

The authors also address the criticisms and concerns surrounding philanthrocapitalism. They acknowledge that it is not a perfect solution and can have unintended consequences. However, they argue that the potential benefits outweigh the risks, and that philanthrocapitalism can be a powerful force for positive change when implemented responsibly.

In the final chapters, Bishop and Green discuss the future of philanthrocapitalism and its potential to shape the world. They emphasize the importance of collaboration between governments, businesses, and philanthropists to address global challenges effectively.

In conclusion, Philanthrocapitalism presents a compelling argument for the integration of business principles into philanthropy. The book advocates for a more strategic and results-driven approach to philanthropy, highlighting the potential of philanthrocapitalism to create lasting social change.

1. The Power of Collaboration

One of the key takeaways from Philanthrocapitalism is the power of collaboration in solving complex social problems. The authors highlight numerous examples of successful collaborations between philanthropists, governments, and businesses that have achieved significant impact. They argue that by pooling resources, expertise, and networks, these collaborations can tackle issues that no single actor could address alone.

For instance, the book discusses the Global Alliance for Vaccines and Immunization (GAVI), which brought together governments, philanthropists like the Bill & Melinda Gates Foundation, and pharmaceutical companies to increase access to life-saving vaccines in developing countries. Through this collaboration, GAVI has immunized millions of children and saved countless lives.

2. The Importance of Measuring Impact

Another key insight from the book is the importance of measuring the impact of philanthropic efforts. The authors argue that by setting clear goals and tracking progress, philanthropists can ensure that their resources are being used effectively and efficiently.

They highlight the example of the Robin Hood Foundation, which rigorously evaluates the impact of its investments in poverty alleviation programs. By using data and evidence to inform their decision-making, the foundation has been able to identify and scale interventions that have the greatest impact on improving the lives of the poor.

3. Leveraging Business Principles for Social Good

Philanthrocapitalism emphasizes the need for philanthropists to apply business principles to their philanthropic endeavors. The authors argue that by adopting a more strategic and results-oriented approach, philanthropists can maximize their impact.

They discuss the concept of venture philanthropy, where philanthropists take a more hands-on approach to their giving, providing not just financial resources but also expertise and guidance to the organizations they support. This approach allows philanthropists to leverage their business acumen and drive systemic change.

4. The Role of Innovation in Philanthropy

The book also highlights the importance of innovation in philanthropy. The authors argue that by embracing new technologies, approaches, and ideas, philanthropists can find creative solutions to long-standing social problems.

They discuss the example of the Skoll Foundation, which supports social entrepreneurs who are tackling global challenges through innovative and scalable solutions. By investing in these entrepreneurs and their groundbreaking ideas, the foundation has catalyzed transformative change in areas such as education, healthcare, and environmental sustainability.

5. The Need for Collaboration between Sectors

Philanthrocapitalism emphasizes the importance of collaboration between the public, private, and nonprofit sectors in addressing social issues. The authors argue that by working together, these sectors can leverage their respective strengths and resources to achieve greater impact.

They discuss the concept of cross-sector partnerships, where businesses, governments, and nonprofits collaborate to tackle complex problems. These partnerships can bring together diverse perspectives, expertise, and resources, leading to more innovative and sustainable solutions.

6. The Role of Philanthropy in Policy Change

The book also explores the role of philanthropy in driving policy change. The authors argue that philanthropists can use their resources and influence to shape policies that address root causes of social problems.

They discuss the example of the Open Society Foundations, which have played a pivotal role in advocating for human rights, democracy, and social justice around the world. Through their funding and advocacy efforts, these foundations have helped bring about significant policy reforms and societal change.

7. The Importance of Collaboration with Local Communities

Philanthrocapitalism emphasizes the need for philanthropists to collaborate with and empower local communities in their efforts. The authors argue that by involving communities in the design and implementation of interventions, philanthropists can ensure that their efforts are culturally sensitive, sustainable, and impactful.

They discuss the example of the Aga Khan Development Network, which works closely with local communities in developing countries to address issues such as poverty, education, and healthcare. By involving community members in decision-making and capacity-building, the network has been able to achieve lasting change.

8. The Role of Philanthropy in Addressing Global Challenges

Lastly, the book highlights the role of philanthropy in addressing global challenges. The authors argue that philanthropists have a unique ability to take risks, experiment with new approaches, and drive change at scale.

They discuss the example of the ClimateWorks Foundation, which focuses on combating climate change through strategic philanthropy. By investing in research, advocacy, and policy initiatives, the foundation has played a crucial role in mobilizing global action on climate change.