1. MULTI DIMENSION IMPACT ACCOUNTING File:
MDIA-p3-05-0-MAN-BUILT-CAPITAL-150705.odp Peter Burgess (c) All
rights reserved MDIA MAN BUILT CAPITAL
2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET
STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL
WEEKS
3. MBC MAN BUILT CAPITAL ... is part of an extremely complex
SOCIO-ENVIRO-ECONOMIC SYSTEM MULTI DIMENSION IMPACT ACCOUNTING
4. The next slides shows: MAN-BUILT CAPITAL GOVERNMENT, LAW,
CITIES, INDUSTRY AND A LOT MORE MULTI DIMENSION IMPACT
ACCOUNTING
5. MULTI DIMENSION IMPACT ACCOUNTING
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11. 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
12. 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
13. The 5 Components of Man Built Capital: ... Financial ...
Physical ... Knowledge ... Institutional ... Social MULTI DIMENSION
IMPACT ACCOUNTING
14. MULTI DIMENSION IMPACT ACCOUNTING Money Government
Laws/Rules Infrastructure Industry Mining Energy Waste Retail
Logistics Knowledge Technology Financial Physical Knowledge
Institutional Social Financial PhysicalKnowledgeInstitutional
SocialMBC Water Sewer Regulations Security Private Sector Public
Sector Energy Buildings Banks Capital Markets Community Culture
Religion Recreation Insurance Health Education Roads Transport Land
Research COMPONENTS OF MAN BUILT CAPITAL (MBC) Etc. Organizations
Securitization
15. 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
16. Man Built Capital Man Built Capital Man Built Structures
and Systems (MBSS) are everything not PEOPLE and not NATURE. MULTI
DIMENSION IMPACT ACCOUNTING
17. These ALL may be changed! MULTI DIMENSION IMPACT
ACCOUNTING
18. 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
19. 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
20. 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
21. 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
22. 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?
23. 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
24. 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.
25. 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
26. 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
27. 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.
28. 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
29. 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
30. 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
31. 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
32. 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
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. 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. 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. 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. Follow up: Request for Feedback Getting these ideas fleshed
out into a clear, simple but comprehensive structure is a big job
and remains a work-in- progress. Many organizations are making
progress with this, but there is no broad universal framework yet
that will enable all the pieces to come together and work
efficiently. I would like to get feedback from anyone and everyone
to help move this initiative forward. While I have some clear
concepts about much of this architecture, there are many details
that I do not know enough about and need help. So, please feel free
to contact me ([email protected]). Please put something relevant
and catchy in the subject line. MULTI DIMENSION IMPACT
ACCOUNTING
38. Some links and contact information: Peter Burgess
[email protected] 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
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MULTI DIMENSION IMPACT ACCOUNTING