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

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. 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, CITIES, INDUSTRY
AND A LOT MORE
MULTI DIMENSION IMPACT ACCOUNTING

5. MULTI DIMENSION IMPACT ACCOUNTING

6. MULTI DIMENSION IMPACT ACCOUNTING

7. MULTI DIMENSION IMPACT ACCOUNTING

8. MULTI DIMENSION IMPACT ACCOUNTING

9. MULTI DIMENSION IMPACT ACCOUNTING

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. 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. The 5 Capitals of MBC:
● Financial Capital
● Physical Capital
● Knowledge Capital
● Institutional Capital
● Social Capital
MULTI DIMENSION IMPACT ACCOUNTING

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. Man Built Capital
Man Built Capital … Man Built Structures
and Systems (MBSS) … are everything
not PEOPLE and not NATURE.
MULTI DIMENSION IMPACT ACCOUNTING

15. These ALL may be changed!
MULTI DIMENSION IMPACT ACCOUNTING

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. 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. ● 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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