When millionaires adopt social responsibility

Most of us naturally assume that wealthy people only want to maximize their wealth, minimize their tax liabilities, and conserve capital and assets for the next generation. While these are valid goals, a number of emerging movements suggest that they may not be the sole objectives of every wealthy individual. Rather than accumulation of wealth at all costs, many individuals are actively seeking to pay more tax, donate money to good causes, and invest for the betterment of future generations – and not just their own offspring.

This benevolence appears in surprising places. At the World Economic Forum in Davos in January 2024, a group of 260 millionaires and billionaires took the unlikely step of calling on the world’s political leaders to introduce higher taxes for the extremely wealthy. In an open letter to participants, members of the Proud to Pay More campaign argued that governments needed to tax the very richest members of society in order to “turn extreme and unproductive private wealth into an investment for our common democratic future”.

The self-styled ‘Patriotic Millionaires’ added: “The solution to this cannot be found in one-off donations or in philanthropy; individual action cannot redress the current colossal imbalance. We need our governments and our leaders to lead. And so we come to you again with the urgent request that you act – unilaterally at the national level, and together on the international stage.”

Challenging traditional ideas

They are not alone. The Gates Foundation, established by Microsoft founder Bill Gates, is now the third largest charitable foundation in the world, while billionaire Amazon founder Jeff Bezos has pledged to give away the majority of his fortune, at the count in April 2025 around $207bn, to good causes. His ex-wife MacKenzie Scott has already given away $19bn of her $36bn divorce settlement.

The ideas of the Good Ancestor Movement have also been gathering momentum. As an advisory firm, it says its raison d’être is to disrupt the mainstream private wealth industry by challenging traditional ideas about the economy, excessive wealth accumulation, tax minimisation and the redistribution of resources and power. It recognises that its clients have children and grandchildren, and do not want to accumulate wealth at the expense of future generations.

The Proud to Pay More report found that three-quarters of millionaires polled in G20 countries support higher taxes on wealth.

It is perhaps unsurprising that in most countries the public favours higher taxes on the wealthy. However, more unusual is that this goal is shared by many millionaires themselves. The Proud to Pay More report found that three-quarters of millionaires polled in G20 countries support higher taxes on wealth.

More than half believe that extreme wealth is a threat to democracy – a phenomenon increasingly evident even in ostensibly democratic countries, as billionaires rub shoulders with politicians and take on influential government posts; 72% of people believe extreme wealth helps buy political influence. Meanwhile, 75% would support the introduction of a 2% wealth tax on billionaires, as proposed by the EU Tax Observatory, an independent think-tank, in October 2023.

Income inequality and extreme personal wealth

The popularity of wealth tax as an idea is likely a response to rising inequality in many countries, and the resulting social and political consequences. Income inequality is rising in the US and in France, for example, although it is declining in Germany, Luxembourg and the UK.

A report by Oxfam in 2024 forecast that the world could have its first-ever trillionaire in just a decade.

A report by poverty pressure group Oxfam in 2024 found that the fortunes of five of the world’s richest individuals had grown by 114% since 2020, and forecast that the world could have its first-ever trillionaire in just a decade. Meanwhile, the organisation estimates, it would take nearly 230 years to end global poverty.

The authors argue: “The problem with extreme wealth is not just that its potential to do good is wasted, but that it creates new harms, negatively impacting society, the economy, and the environment, rendering millions if not billions of people worse off. The potential harm of extreme wealth goes far beyond the cost of inaction. That wealth, and its associated harms, are only growing.”

They say that not only do the very richest consume a disproportionate share of resources, their wealth may even give them a vested interest in the continuation and growth of environmentally or socially damaging industries. The Oxfam report notes that a billionaire is managing or is the principal shareholder of seven out of 10 of the world’s biggest corporate groups, raising questions about the implications for incentives and the equitable functioning of capitalism.

Does wealth guarantee happiness?

Wealth concentrated in a handful of companies may starve other parts of the economy of capital. Risks of Extreme Wealth, a report published by Patriotic Millionaires and the Good Ancestor Movement, identifies an “ever-higher mountain to climb for new businesses and innovation to compete with such behemoths. And if they do become a threatening success, they are quickly acquired by the big players. This type of anti-competition leads directly to a disproportionate command over resources, labour and markets.”

While too much money sounds like a problem most people might like to have, there are concerns for the billionaires themselves. While most surveys suggest a direct relationship between money and happiness, it is complicated and nuanced. Research suggests that above a certain level, greater wealth may not make people any happier. It can have a negative impact on family life: the cliché of the hard-driven business executive that barely sees their family is commonplace for a reason.

Excessive wealth can have unhappy consequences, particularly for young people.

Excessive wealth can have unhappy consequences, particularly for young people. The US National Institutes of Health says affluent young people report significantly higher levels of anxiety in several domains, and greater depression. They also admit to significantly higher substance use than inner-city students, including more frequent consumption of cigarettes, alcohol, marijuana and other illegal drugs.

These factors underline why a socially responsible approach to investment can be critical, and why wealth planning needs to encompass all aspects of an individual’s attitude to money, avoiding the assumption that all clients have the same objectives. While many wealthy individuals may wish to explore tax-saving strategies or pursue high-growth investments, considering philanthropic and other goals should be a natural part of a wealth management strategy, looking beyond the relentless pursuit of greater wealth.

Wealth is multi-faceted, and it is not just financial. Having a lot of money is not an end in itself, but a means to enjoy a better and, above all, more fulfilling life.