Mdia p3-02-the-people-dimension-150420

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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