Who is going to lead the fight against poverty, build a sustainable future for our economies free from the threat of climate change, and take on the social problems that divide even the richest societies?

For the past century, we have looked to governments to tackle these problems. But their track record has been, at best, mixed. The fiscal fallout of the financial crisis of 2008 also means that public budgets and government ambitions are going to have to be scaled back for at least a generation.

A new approach to solving social problems is needed, based on innovative partnerships between business, nonprofits and government. A group of wealthy entrepreneurs and business leaders is increasingly taking the initiative in creating these innovative new solutions. Rejecting the idea that business is about short-term profits, damn the consequences to society and the environment, these philanthrocapitalists think the winners from our economic system should give back and that business can ‘do well by doing good’.

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, Richard Branson, Angelina Jolie, and Bono, among others – they show how a web of motivated givers has set out to change the world. In the new, updated paperback edition of Philanthrocapitalism Bishop and Green also describe how new, smart ways of giving that harness the power of social networks can help all of us to become philanthrocapitalists and play a more effective part in changing the world for the better.

The philanthrocapitalism revolution will have huge implications. As governments cut back their spending on social causes, giving may be the greatest force for societal change in our world.