'Philanthrocapitalist' manifesto offers radical ideas around business of 'doing good'

A ‘philanthrocapitalist’ manifesto outlining 17 ways to transform ‘doing good’ under the next government was launched this week.

Written by Matthew Bishop, the US business editor of The Economist, and former civil servant Michael Green, the new manifesto coincides with the launch of  a revised edition of their book, Philanthrocapitalism; how giving can save the world, which takes a business-centric approach to solving social problems.

This manifesto sets out a plan to achieve three goals; more giving, more social investment and better philanthropy by bringing businesses, philanthropists and the government together to work in new ways.

Among the ideas mooted in the debate-provoking and purposely controversial manifesto are:

• the scrapping of The Office of the Third Sector to be replaced with an Office of Social Innovation

• the establishment of a ‘social stock exchange’

• the setting up of a type of ‘Ofgood’, with the Charity Commission taking on responsibility  for reporting on the efficiency and effectiveness of the sector every year and for improving the performance of the sector

• A proportion of lottery funding and government funding and spending to be earmarked for match-funding partnerships with philanthropists and all government departments identifying policy areas in which they could involve philanthropists

• A compulsory 5% pay out of philanthropic foundations assets each year.

• The Confederation of British Industry (CBI) to make it a norm for British businesses to give 1% of profits to charity and encourage businesses to aim to treble payroll giving over the next three years

Bishop says: “Establishing such norms in a bid to increase and improve philanthropy would call for a carrot and stick approach; encouraging more giving through matched funds, for example, and, where necessary, introducing legislation.

“The decision to give is a private one yet government can encourage giving with incentives and leadership. Similarly, corporate leaders can make giving a core value of their companies and an integral part of our business culture. We need more active incentives for philanthropy,” he adds.

In response to the call by the authors for the scrapping of the OTS and claims that it has "been captured by the vested interests of the sector and has failed to challenge conventional wisdoms or engage with philanthropy in a meaningful way" an OTS spokesperson said, "Our work in driving forward social investment, volunteering and, of course, philanthropy, while pushing organisations to modernise and work together, is the opposite to an organisation ‘captured by vested interests'.”

Among comments made about the revised book that came from the floor of the launch event, held on Monday 25th January at the London Foundling Museum, itself established by philanthropist Sir Thomas Coram, was that itshould take a more European perspective, that its brief was too wide and involved too many groups, and that there is a danger in ‘blended models’ such as philanthrocapitalism that business imperatives can take over from social aims as had been witnessed in the microfinance model, according to one commentator.

The manifesto can be found on the philanthrocapitalism website where comments are also invited.

The paperback edition of Philanthrocapitalism; how giving can save the world is published by  A & C Black Publishers Ltd  ISBN-10: 1408121581 ISBN-13: 978-1408121580 and costs £5.99