MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved
M...
A PEOPLE CENTRIC SYSTEM
At the core, the PURPOSE of any and all
economic activities are to achieve an
improved Quality of ...
More Money and More Stuff
More MONEY and more STUFF is a widely
used proxy for a better quality of life and
standard of li...
The Role of Business
Business is an efficient way to run things.
Business managers have meaningful metrics
related to prof...
People Progress
Efficiency is:
● Maximum improvement in Human
Capital (i.e. better Quality of Life and Standard
of Living)...
There are:
➔ People at the Bottom of the Pyramid;
➔ An increasingly large and affluent middle
class of business people, pr...
There are:
➔ People who do jobs to earn income;
➔ People who earn their income from
investments; and
➔ People who cannot w...
In the end, its all about PEOPLE
➔ PEOPLE make decisions about Capital
➔ PEOPLE make Government Policy
➔ PEOPLE run things...
Its all about PEOPLE
➔ PEOPLE make decisions about Capital
➔ What matters, where to invest
➔ PEOPLE make Government Policy...
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
Financial
Capital
Human
Capital
Man Built
Capital
Natu...
MULTI DIMENSION IMPACT ACCOUNTING
ACTIVITIES OF AN INDIVIDUAL
Input of
Human
Capital:
Time, Effort,
Skill, Ability,
Knowle...
MULTI DIMENSION IMPACT ACCOUNTING
Job-Money Work
Housing
Time
Skills
Income
Recreation
Education
ProGood Work
Energy
PLUS ...
People … Human Capital … STATE
➔ Quality of life is a function of:
➔ The Individual
➔ What has happened in the past
➔ What...
People … Human Capital … FLOW
➔ Basic needs are:
➔ Food
➔ Water
➔ Shelter
➔ Basic stuff
➔ A better quality of life require...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
The FOOD Dynamic
Use Energy
for cooking
Get
Nutrition
Sun
BOP
Financial
Capital
Huma...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
The IMPACT of WATER
Use Water
Survive for
another day
Sun
BOP
Financial
Capital
Huma...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
LAND USE
Sustainable agriculture
Water purification
About LAND USE
Wetlands
Intensiv...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
WATER USE
Food production
uses water
Beverage production
uses water
About WATER USE
...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
EMISSIONS
SO2 … acid rain
CO2-Greenhouse Gas
About ATMOSPHERIC POLLUTION
Air polluti...
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Mdia p3-02-the-people-dimension-150420

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved MDIA The PEOPLE Dimension or HUMAN CAPITAL
  2. 2. A PEOPLE CENTRIC SYSTEM At the core, the PURPOSE of any and all economic activities are to achieve an improved Quality of Life and Standard of Living for PEOPLE MULTI DIMENSION IMPACT ACCOUNTING
  3. 3. More Money and More Stuff More MONEY and more STUFF is a widely used proxy for a better quality of life and standard of living. It is a key driver of the modern Western style consumer economy, but is unstable in its present form and is doing dangerous damage to society and the environment. MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. The Role of Business Business is an efficient way to run things. Business managers have meaningful metrics related to profit performance … and business optimizes against these. ➔ There are advantages to this perspective: ➔ Efficiency is encouraged as well as innovation. ➔ More production is enabled and shortages avoided. ➔ However, there are disadvantages: ➔ Efficiency means more production for less labor; ➔ Less labor is a negative for employees and society; ➔ Also bad for workplace safety and environment. MULTI DIMENSION IMPACT ACCOUNTING
  5. 5. People Progress Efficiency is: ● Maximum improvement in Human Capital (i.e. better Quality of Life and Standard of Living); ● Minimum degradation of Natural Capital Man Built Capital has enabled amazing improvement in efficiency over the last 200 years. MULTI DIMENSION IMPACT ACCOUNTING
  6. 6. There are: ➔ People at the Bottom of the Pyramid; ➔ An increasingly large and affluent middle class of business people, professionals and employees; and ➔ A very small but rich and powerful elite with substantial ownership interests. MULTI DIMENSION IMPACT ACCOUNTING
  7. 7. There are: ➔ People who do jobs to earn income; ➔ People who earn their income from investments; and ➔ People who cannot work and do not have income. MULTI DIMENSION IMPACT ACCOUNTING
  8. 8. In the end, its all about PEOPLE ➔ PEOPLE make decisions about Capital ➔ PEOPLE make Government Policy ➔ PEOPLE run things ➔ PEOPLE buy products and use them ➔ PEOPLE are at of center of family and society ➔ PEOPLE are discovering knowledge MULTI DIMENSION IMPACT ACCOUNTING
  9. 9. Its all about PEOPLE ➔ PEOPLE make decisions about Capital ➔ What matters, where to invest ➔ PEOPLE make Government Policy ➔ Legislation ➔ Rules and regulations ➔ Government priorities ➔ PEOPLE run things ➔ They are C level managers ➔ They are middle managers ➔ They are workers and junior staff ➔ PEOPLE buy products and use them ➔ Products (goods and services) are the source of much Quality of Life ➔ PEOPLE are at of center of family and society ➔ PEOPLE are discovering knowledge MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT Financial Capital Human Capital Man Built Capital Natural Capital Sun Financial Capital Human Capital Man Built Capital Natural Capital MoneyFood Government Nature (life) Sun Nature (life) Capital Market Value Water Laws. Rules Nature (life)Land Shelter Infrastructure WaterClothes Industry Nature (life)Air Health Mining Ecoservices Education EnergySkills Waste Recreation Retail Culture LogisticsReligion Knowledge Technology Security Energy Mobility Profit
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING ACTIVITIES OF AN INDIVIDUAL Input of Human Capital: Time, Effort, Skill, Ability, Knowledge Improves Society Improves MBSS Pro Good Activities Buy and Use PRODUCTS e.g. Food, Energy Shelter, Transport Pro Money Activities e.g. Paid Work Non-Impact Recreation Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Improves QoL and Human Capital WASTE Liquid Gases Solids Natural Capital Depleted Maybe improves FC in HC Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun INPUTS ACTIVITIES BAD Impact State-EOPState-BOP GOOD Impact Use of MBSS Use of Natural Capital Use of Solar
  12. 12. MULTI DIMENSION IMPACT ACCOUNTING Job-Money Work Housing Time Skills Income Recreation Education ProGood Work Energy PLUS opportunities Improves society Food Clothes Resource Depletion Environmental Degradation BOP EOPThe Individual Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun PERSONAL ASSETS Energy Health Enjoyment Skills Experience Family Shelter Friends Money Stuff QUALITY OF LIFE Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun PERSONAL ASSETS Energy Health Enjoyment Skills Experience Family Shelter Friends Money Stuff QUALITY OF LIFE PRODUCTS use MBSS PRODUCTS Impact NC PRODUCTS Use MBSS PRODUCTS improve QOL Health Energy
  13. 13. People … Human Capital … STATE ➔ Quality of life is a function of: ➔ The Individual ➔ What has happened in the past ➔ What are the possibilities for the future ➔ What is happening right now ➔ Quality of life is a function of many things: ➔ Genetics ➔ Personality traits ➔ The family environment ➔ The broader circle of friends and community ➔ Knowledge from education ➔ Knowledge from experience ➔ Personal wellness ➔ Access to food and water ➔ Access to shelter ➔ Access to goods and services ➔ Security ➔ Financial wealth ➔ Job opportunities and income MULTI DIMENSION IMPACT ACCOUNTING
  14. 14. People … Human Capital … FLOW ➔ Basic needs are: ➔ Food ➔ Water ➔ Shelter ➔ Basic stuff ➔ A better quality of life requires: ➔ Access to health services ➔ Access to education ➔ Funds to pay for things ➔ Wealth or income from a job to provide funds ➔ Security ➔ Access to spiritual support ➔ A strong family ➔ A circle of friends ➔ A community that enhances QoL ➔ The critical constraints are: ➔ Time … only n hours per year ➔ Health / energy / capacity of the individual MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. MULTI DIMENSION IMPACT ACCOUNTING Sun The FOOD Dynamic Use Energy for cooking Get Nutrition Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Buy Food Cook Food Eat Food SUPPLY CHAIN Energy Fertilizers Pesticides Land Water Air Labor Growth Hormones Equipment Organization Know How Light Transportation INPUTS Heat Mechanization Food storage Antibiotics Use MoneyFinancial Accounts Revenues Money Costs Pays taxes Profit Degrade Land GHG emissions Water pollution Packaging Wears out Public infrastructure Human Capital Private Business Public Commons Impact Accounts Impact on PEOPLE Impact on NATURAL CAPITAL Wears out Physical Capital
  16. 16. MULTI DIMENSION IMPACT ACCOUNTING Sun The IMPACT of WATER Use Water Survive for another day Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Get Water WATER is incredibly VALUABLE
  17. 17. MULTI DIMENSION IMPACT ACCOUNTING Sun LAND USE Sustainable agriculture Water purification About LAND USE Wetlands Intensive monoculture Coastal mangrove Urban infrastructure Roads, Parking Lots There is a limited amount of land There are multiple possible uses Money Profit Land is a factor in improving human capital, producing goods and services, locating MBSS, and providing very critical ecosystem services Suburban sprawl Housing Tropical forest Habitat Industrial operations Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun
  18. 18. MULTI DIMENSION IMPACT ACCOUNTING Sun WATER USE Food production uses water Beverage production uses water About WATER USE Water is essential to LIFE Nothing is more important Household water use essential Industrial processes use water Rainfall and fresh water are abundant in some places but not everywhere Household waste also pollutes Waste water pollution from processes a critical issue Important for all processes to treat water before discharge Water is abundant, but most has too much dissolved salts to be potable Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun
  19. 19. MULTI DIMENSION IMPACT ACCOUNTING Sun EMISSIONS SO2 … acid rain CO2-Greenhouse Gas About ATMOSPHERIC POLLUTION Air pollution has many forms, all of which are more or less detrimental to people and planet Particulates MH4-Methane-GHG Some emissions have a direct impact on health Nitrous oxides Freon-ozone layer damage Some emissions are greenhouse gases that cause global warming The atmosphere is not an infinite free dump for undesirable and toxic emissions All emissions have a cost Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun

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