Bill Ackman agrees with Jeff Bezos: Being a great CEO can do more for the world than philanthropy

Bill Ackman has spent roughly two decades and close to $1 billion on philanthropy. His verdict: Capitalism can often have a stronger societal impact.

“I’ve spent a fair amount of time on philanthropy, and it’s vastly less efficient at solving problems than capitalism,” the Pershing Square Capital Management founder and CEO told Fortune editor-in-chief Alyson Shontell in an interview for the Fortune 500: Titans and Disruptors of Industry series. “You create far more jobs through capitalism than through philanthropy.”

Nonprofits, Ackman argued, lack the equity incentives and market pressure that keep enterprises sharp—and can be “taken over” and turned into “political vehicles instead of sticking to their original mission.”

The argument puts him alongside Jeff Bezos, who made a similar case on CNBC’s Squawk Box in May: “If I do my job right, the value to society and civilization from my for-profit companies will be much, much larger than the good that I do with my charitable giving,” the Amazon founder said. The two comments express a shared conviction that has become a talking point among elite capital allocators: that operating a great company, not writing checks, is the more impactful measure of social contribution.

What makes Ackman’s version interesting is that he isn’t abandoning giving. He’s trying to redesign it. “I’ve learned a lot over 20 years of philanthropy about what works and what doesn’t,” he said. “And I’m sure there’s more to learn. The goal is to focus on gaps in the capital markets.”

His newest venture, the Brain Research........

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