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Mdia p3-04-human-capital-150420

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Mdia p3-04-human-capital-150420

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Mdia p3-04-human-capital-150420

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-04-HUMAN-CAPITAL-150420.odp Peter Burgess (c) All rights reserved MDIA HUMAN CAPITAL IS ALL ABOUT PEOPLE
  2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
  3. 3. 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 Genetic makeup About Human CapitalAbout Human Capital Our nurturing Our surroundings Our education Our health care The Past Our food Our water Present Future Accumulated past The present value of the future The situation in the present Opportunities based on the characteristics of the PLACE Opportunities based on the capabilities of the individual
  4. 4. 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 Human Capital Food Water Shelter Clothes Health Education Skills Recreation Culture Religion Security Energy Mobility Our genetic makeup About Human CapitalAbout Human Capital Our nurturing Our surroundings Our education Our health care The past Our food Our water
  5. 5. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Wellness State of health is a major determinant of quality of life. With good health, everything is possible, without good health, much less. A big part of wellness is determined by lifestyle what we eat and drink and how we exercise Quality of Life Family and friends Community
  6. 6. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Capabilities Capabilities are enhanced by education and skill training. They are also enhanced by lifetime learning. Quality of Life Family and friends Community Opportunities
  7. 7. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Opportunities Quality of Life Family and friends Community Opportunities
  8. 8. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Financial Wealth A modest amount of financial wealth, enough to provide financial security is valuable and reduces stress enormously. A vast amount of financial wealth adds rather little to quality of life … but does give bragging rights in a money centric society Quality of Life Family and friends Community Opportunities
  9. 9. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Housing An adequate amount of shelter is a basic need. Quality of Life Family and friends Community Opportunities Security
  10. 10. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Surroundings Surroundings matter especially for children. Children learn from their surroundings. Quality of Life Family and friends Community Opportunities Security
  11. 11. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Security Security … being safe is important to quality of life Quality of Life Family and friends Community Opportunities Security
  12. 12. 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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Family and friends Family and friends are central to quality of life because, above all else, people are social beings Quality of Life Family and friends Community Opportunities Security
  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 Wellness About Human CapitalAbout Human Capital Capabilities Financial wealth Housing Surroundings Community Community is something beyond family and friends. Community is place, and where there is access to the goods and services that are needed. Community is where there is access to education and health services, to utilities, etc Quality of Life Family and friends Community Opportunities Security
  14. 14. Human Capital quantification. Conventional wisdom suggests that quantification if human capital cannot be done. But surely it must be done or the default in economic analysis is going to be that the value of human capital is zero. MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. What is the value of a baby? What is the value of your baby? The usual answer ends up being 'priceless' or some equivalent of this idea. Clearly a baby has a huge value … and we should be able to assign a number to 'priceless' so that this number can figure in all the other computations that are done about society, the environment and the economy. MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. What value a death? The TrueValueMetrics position is that a human being is an asset with a positive value. Death means one less human being. Human Capital goes down when a person dies. It does not matter where a person is, or what station in life, human capital goes down when an individual dies. MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. Operating costs and depreciation Equipment has operating costs and is depreciated over its life. Somewhat similar concepts need to be applied within Human Capital. A human being needs food and drink, shelter, clothes, travel expenses, healthcare expenses, recreation, etc. in order to live. There is also education and skills training to better oneself. A human being works to satisfy these needs. This may be self employment as in subsistence agriculture or it may be paid employment in an organization. This income pays for the things people need, and any surplus increases an individuals financial capital. MULTI DIMENSION IMPACT ACCOUNTING
  18. 18. Impact … cost and contribution Equipment is used to add value in the production process. A human being uses his/her time and capabilities to add value to the work they have. Within the workplace, this contribution results in profit for the organization. This money dimension is incorporated into economic statistics. A human being also uses high/her time to work on things that are unpaid but important to family and society. This includes 'parenting' which benefits children. This includes all sorts of pro-good activities that have value but are not transacted in money. These non-money dimension is ignored by economic statistics. MULTI DIMENSION IMPACT ACCOUNTING
  19. 19. Needs and Wants The value associated with PRODUCTS (goods and services) that satisfy needs and make survival possible is huge. The same PRODUCTS when they are merely 'wanted' by the buyer have a much lower value. The marketplace for PRODUCTS is driven by a powerful system of business advertising and public relations. As a result many PRODUCTS are perceived as needs when they are actually wants … and indeed just low value wants. MULTI DIMENSION IMPACT ACCOUNTING
  20. 20. 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

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