MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-02-MAN-BUILT-CAPITAL-150609.odp Peter Burgess (c) All rights reserved
MDIA...
MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.
SLIDESET STILL IN DEVELOPMENT.
UPDATES WILL BE POSTED OVER
THE NEXT SE...
MBC … MAN BUILT CAPITAL ...
is part of an extremely complex
SOCIO-ENVIRO-ECONOMIC SYSTEM
MULTI DIMENSION IMPACT ACCOUNTING
The next slides shows:
MAN-BUILT CAPITAL
GOVERNMENT, CITIES, INDUSTRY
AND A LOT MORE
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT (1)
Financial
Capital
Human
Capital
Man Built
Capital
...
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
Financial
Capital
Human
Capital
Man Built
Structures
&...
The 5 Capitals of MBC:
● Financial Capital
● Physical Capital
● Knowledge Capital
● Institutional Capital
● Social Capital...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
Man Built Capital
Man Built Capital … Man Built Structures
and Systems (MBSS) … are everything
not PEOPLE and not NATURE.
...
These ALL may be changed!
MULTI DIMENSION IMPACT ACCOUNTING
The PURPOSE of all economic activity is:
(1) to enable an improved Quality of Life
and Standard of Living for PEOPLE;
and,...
SOCIO-ENVIRO-ECONOMIC
● SOCIO is Human Capital … PEOPLE;
● ENVIRO is Natural Capital … NATURE;
● ECONOMIC is everything th...
● SOCIO is a PEOPLE perspective.
Everything should result in people
progressing.
● ENVIRO is about NATURE and the
ultimate...
Financial Capital is part of Man Built
Capital but separated out for the purpose
of analysis because it has become such
an...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
Institutional Capital comprises:
● Government Departments and Agencies;
● A framework of law;
● Systems of law enforcement...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
Physical Capital
Some of this is owned by Corporate
Organizations, some by Private People
and some by the Public Sector.
O...
Physical Capital comprises:
● Infrastructure;
● Factories;
● Machinery and equipment;
● Transports vehicles (ships, aircra...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
Knowledge Capital
What we know enables productivity and
performance.
Some of this is shared universally and is
available f...
Knowledge Capital
Knowledge Capital is expanding rapidly …
faster than at any previous time in history.
Important parts of...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
Social Capital comprises:
● Networks of friends and family;
● Community;
● Culture;
● Religion;
● Community … people;
● Co...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Su...
MULTI DIMENSION IMPACT ACCOUNTING
Money Government
Laws/Rules
Public
Infrastructure
Industry
Mining
Energy
Waste
Retail
Lo...
OWNERSHIP AND FINANCING
The matter of OWNERSHIP is important in the
understanding of MBC.
This is especially true in conne...
Funding for Man Built Capital
The funding for MBC depends on ownership.
If ownership is private, then funding is facilitat...
CONCLUSION
Our future depends almost entirely on how MAN
BUILT CAPITAL (MBC) is managed.
KNOWLEDGE has the potential to be...
More than anything else, this will be achieved by
implementing better metrics, metrics that account
not only for the profi...
Moving forward … Request
for collaboration
Money is part of a complex socio-enviro-economic
system. While it works … it do...
Some links and contact information:
Peter Burgess … peterbnyc@gmail.com
Peter Burgess LinkedIn profile
https://www.linkedi...
Upcoming SlideShare
Loading in …5
×

Mdia p3-02-man-built-capital-150420

171 views

Published on

Mdia p3-02-man-built-capital-150420

Published in: Data & Analytics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
171
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Mdia p3-02-man-built-capital-150420

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-02-MAN-BUILT-CAPITAL-150609.odp Peter Burgess (c) All rights reserved MDIA MAN BUILT CAPITAL
  2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
  3. 3. MBC … MAN BUILT CAPITAL ... is part of an extremely complex SOCIO-ENVIRO-ECONOMIC SYSTEM MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. The next slides shows: MAN-BUILT CAPITAL GOVERNMENT, CITIES, INDUSTRY AND A LOT MORE MULTI DIMENSION IMPACT ACCOUNTING
  5. 5. MULTI DIMENSION IMPACT ACCOUNTING
  6. 6. MULTI DIMENSION IMPACT ACCOUNTING
  7. 7. MULTI DIMENSION IMPACT ACCOUNTING
  8. 8. MULTI DIMENSION IMPACT ACCOUNTING
  9. 9. MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT (1) Financial Capital Human Capital Man Built Capital Natural Capital Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun Part of Man Built Capital (MBC) Metrics around money and wealth are everywhere Human Capital is about the Quality of Life and Standard of Living of PEOPLE, and as such, is the most important purpose of economic activity … but no metrics Man Built Capital(MBC) There are metrics for efficiency and effectiveness in private for profit organizations, but less so for the public sector and for the commons Everything is built on top of Natural Capital, that is all the resources that occur in nature, the environment in all its complexity and ecosystem services that it enables … very complex detail metrics, difficult to understand and no way to summarize these metrics and use them effectively Sun … the ultimate source of all energy
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Money FoodGovernmentNature (life) Sun Nature (life) Capital Market Value Water Laws. RulesNature (life)Land Shelter InfrastructureWater Clothes IndustryNature (life)Air Health MiningEcoservices Education Energy Skills Waste RecreationRetail Culture Logistics Religion Knowledge Technology Security Energy Mobility Profit
  12. 12. The 5 Capitals of MBC: ● Financial Capital ● Physical Capital ● Knowledge Capital ● Institutional Capital ● Social Capital MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital
  14. 14. Man Built Capital Man Built Capital … Man Built Structures and Systems (MBSS) … are everything not PEOPLE and not NATURE. MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. These ALL may be changed! MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. The PURPOSE of all economic activity is: (1) to enable an improved Quality of Life and Standard of Living for PEOPLE; and, (2) to do this without stressing nature and the enabling natural systems. Man Built Capital in all its manifestations have been developed and deployed to make this possible. MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. SOCIO-ENVIRO-ECONOMIC ● SOCIO is Human Capital … PEOPLE; ● ENVIRO is Natural Capital … NATURE; ● ECONOMIC is everything that MONEY measures … that is MBC (Man Built Capital). MULTI DIMENSION IMPACT ACCOUNTING
  18. 18. ● SOCIO is a PEOPLE perspective. Everything should result in people progressing. ● ENVIRO is about NATURE and the ultimate source of everything that people can ever have; and, ● ECONOMIC is MAN BUILT CAPITAL … all sorts of structures and systems that have been built to enable progress. MULTI DIMENSION IMPACT ACCOUNTING
  19. 19. Financial Capital is part of Man Built Capital but separated out for the purpose of analysis because it has become such an important part of the conventional way of measuring … specifically: (1) business profit; (2) capital market valuations; and, (3) GDP growth. MULTI DIMENSION IMPACT ACCOUNTING
  20. 20. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun WHAT IS THIS? Future flows of profit determine capital market valuation. Change becomes an Increment to financial capital. This is the making of fictional or virtual wealth Debits and credits of money result in profit which Increments financial capital About Financial Capital Money Stocks and Bonds Ownership of Securities Real Estate Ownership of Physical Assets Ownership of Assets Ownership of Debt In the end, all FC is owned by people WHICH OF THESE IS RIGHT?
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Nature (life) Land Water Air pollution Ecoservices GHG emissions About Nature (Life) GHG Emissions Green House Gas (GHG) emissions like CO2, CH4 and others cause global warming, which is having impact on weather patterns and other systems. The natural ecosystem service capacity is not enough to balance the emissions originating from man built systems
  22. 22. Institutional Capital comprises: ● Government Departments and Agencies; ● A framework of law; ● Systems of law enforcement and justice; ● Security capacities; ● Corporate organizations; ● Health systems; ● Education systems; ● etc. MULTI DIMENSION IMPACT ACCOUNTING
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Institutional Capital Government, Rule of Law, Companies, Organizations. Systems for: Health Education, Banking, Social Services, Security, etc.
  24. 24. Physical Capital Some of this is owned by Corporate Organizations, some by Private People and some by the Public Sector. Ownership has been a key feature of modern capitalism … and is worthy of more study and understanding. MULTI DIMENSION IMPACT ACCOUNTING
  25. 25. Physical Capital comprises: ● Infrastructure; ● Factories; ● Machinery and equipment; ● Transports vehicles (ships, aircraft, trucks, railcars, etc.); ● Houses and apartments; ● Offices, hotels and commercial buildings; ● Computers, etc. MULTI DIMENSION IMPACT ACCOUNTING
  26. 26. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Physical Capital Commercial buildings, Factory buildings, Housing, Stores, Machinery and equipment, Vehicles, Infrastructure: Roads and bridges Railroads Seaports and airports Communications Water and sewer Electricity, Oil and Gas, Hospitals, Schools. etc.
  27. 27. Knowledge Capital What we know enables productivity and performance. Some of this is shared universally and is available for free use, and some is owned by Individuals and Business entities and may be used for their private gain at the expense of society as a whole. MULTI DIMENSION IMPACT ACCOUNTING
  28. 28. Knowledge Capital Knowledge Capital is expanding rapidly … faster than at any previous time in history. Important parts of Knowledge Capital have been created with Government funds, often for military and security purposes. MULTI DIMENSION IMPACT ACCOUNTING
  29. 29. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Knowledge Capital Mathematics Physics Biology Chemistry Science of materials Computer science Information technology Biotechnology Artificial intelligence Robotics
  30. 30. Social Capital comprises: ● Networks of friends and family; ● Community; ● Culture; ● Religion; ● Community … people; ● Community … access to services; ● Social safety net; ● etc. MULTI DIMENSION IMPACT ACCOUNTING
  31. 31. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Social Capital Relationships Human interaction Teamwork Religion Culture History
  32. 32. MULTI DIMENSION IMPACT ACCOUNTING Money Government Laws/Rules Public Infrastructure Industry Mining Energy Waste Retail Logistics Knowledge Technology Financial Capital Physical Capital Knowledge Capital Institutional Capital Social Capital Financial Capital Physical Capital Knowledge Capital Institutional Capital Social CapitalMBC Water Sewer Regulations Security Private Sector Public Sector Electric Grid Buildings Banks Capital Markets Community Culture Religion Recreation Insurance Health Education Roads Transport Public Lands Research ELEMENTS OF MAN BUILT CAPITAL (MBC)
  33. 33. OWNERSHIP AND FINANCING The matter of OWNERSHIP is important in the understanding of MBC. This is especially true in connection with the financing of MBC, Capital market financing is facilitated by private ownership, but the metrics for this mean that important things cannot get done because they cannot be financed. MULTI DIMENSION IMPACT ACCOUNTING
  34. 34. Funding for Man Built Capital The funding for MBC depends on ownership. If ownership is private, then funding is facilitated by profit potential. If ownership is public (government) then funding is constrained by political will and government revenue limitations. A sad reality is that initiatives with a huge potential for good go unfunded because the dominant financial system only has focus on profit hardly at all on good. MULTI DIMENSION IMPACT ACCOUNTING
  35. 35. CONCLUSION Our future depends almost entirely on how MAN BUILT CAPITAL (MBC) is managed. KNOWLEDGE has the potential to be used to optimize PHYSICAL CAPITAL, INSTITUTIONS and SOCIETY so that impact on PEOPLE is as good as possible with as little negative impact on NATURAL CAPITAL as possible. MULTI DIMENSION IMPACT ACCOUNTING
  36. 36. More than anything else, this will be achieved by implementing better metrics, metrics that account not only for the profits of the organization and the impact on FINANCIAL CAPITAL, but also impact the organization has on HUMAN CAPITAL (PEOPLE) and NATURAL CAPITAL (PLANET). This is the goal of the MDIA (Multi Dimension Impact Accounting) initiative. MULTI DIMENSION IMPACT ACCOUNTING
  37. 37. Moving forward … Request for collaboration Money is part of a complex socio-enviro-economic system. While it works … it does not work as well as it should, nor as well as it could. The work of MDIA is to enable this complex system to work better. MDIA needs to be a team effort. Join in and help to make the world a better place. Please get in touch. Peter Burgess … peterbnyc@gmail.com MULTI DIMENSION IMPACT ACCOUNTING
  38. 38. Some links and contact information: Peter Burgess … peterbnyc@gmail.com Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation for MDIA slidesets http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets MULTI DIMENSION IMPACT ACCOUNTING

×