PRODUCT ... a very critical link (140517)

9:22 PM
peterbnyc@gmail.com
www.truevaluemetrics.org
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Product:
A Very Critical Link
@truevaluemetric

9:22 PM
Accountants are sometimes degoratorily referred to
as 'bean counters'. This works when accountants
are doing 'conventional' money profit accounting.
For the 21st century … we need something like
MDIA so that there is rigorous accounting for impact
on people and planet as well as just the profit.
The 'bean counter' descriptor does not work. Simply
'adding up the money' is not sufficient to describe
the performance of an organization in a useful and
responsible way.
MDIA analysis is more like the 'counting of spaghetti'
… and even that is gross simplification.
Product is the link between almost everything in
modern society, in the modern global economy
and in the impact of everything on resources and
the environment.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp
PRODUCT: A Very Critical Link

9:22 PM
The three segments of the MDIA analysis framework are:
People (society)
Nature's
bounty
People built
constructs
The MDIA Framework for Measurement

9:22 PM
The three segments of the MDIA analysis framework
are PEOPLE, PEOPLE BUILT CONSTRUCTS and
NATURE'S BOUNTY.
We measure corporate performance and profit with
great rigor. We use GDP growth as an indicator of
economic performance. We have assumed for 70
years that these metrics are also indicators of the
state of people and planet … but this is wrong.
PRODUCT: Life Cycle Analysis

9:22 PM
The three segments of the MDIA analysis framework
are PEOPLE, PEOPLE BUILT CONSTRUCTS and
NATURE'S BOUNTY.
We measure corporate performance and profit with
great rigor. We use GDP growth as an indicator of
economic performance. We have assumed for 70
years that these metrics are also indicators of the
state of people and planet … but this is wrong.
Life Cycle Analysis of products is a very critical link
between everything:
… between the three segments referred to above
… producing impact on quality of life
… producing impact on resources
… producing impact on environmental degradation
Decisions are made to buy or not to buy products … in
turn thus means decisions have to be made to make or
not to make products.

9:22 PM
Beauty products
http://pgbeautyscience.com/breakthroughs-xix.php

9:22 PM
http://newscenter.lbl.gov/feature-stories/2008/04/18/life-cycle-analysis/
Impact: Resource Use / Environmental Degradation

9:22 PM
http://www.newhaven.edu/sustainability/carbon-footprint-report/
Impact: Resource Use / Environmental Degradation

9:22 PM
Paper and print
http://www.tappi.org/content/enewsletters/ahead/2011/issues/2011-04-13.html

9:22 PM
MDIA uses the conventional accounting construct:
● State at the beginning of the period (BoP)
● PLUS: Activities for the period
● BECOMES: State at the end of the period (EoP)
PRODUCT: TruCost / TruValue

9:22 PM
MDIA uses the conventional accounting construct:
● State at the beginning of the period (BoP)
● PLUS: Activities for the period
● BECOMES: State at the end of the period (EoP)
The images representing life cycle analysis are
circular and difficult to convert into this construct.
Probably more than anything else, this is what
MDIA does to make MDIA analysis easy to use
and easy to understand.

9:22 PM
The money cost of raw materials and energy are
included in the accounts based on transactions prices
to buy the materials.
Beyond this cost, there are other cost / value elements
that should also be brought into account.
The SUPPLY CHAIN for the product frequently has a
bigger impact on the true socio-economic performance
than the manufacturing / assembly of the product.
The USE of the product also may have a big impact on
the trucost / truvalue of the product.
Lastly, the POST USE WASTE CYCLE has an impact
on the trucost / truvalue of the product.

9:22 PM
Raw material;
Virgin raw materials;
Energy;
Worker remuneration;
Payroll benefits;
Cost of capital equipment;
Cost of money capital;
Cost of working capital;
Taxes;
Pro-good expenditures;
Profit.
Price / Sales revenue
PRODUCT: Elements of TruValue
From previous supply chain
RESOURCE DEPLETION
ENERGY SUPPLY CHAIN IMPACT
PEOPLE BENEFIT
PEOPLE BENEFIT
Economic life based depreciation
Benefit to investors
Interest → Benefit to investors
Benefit to Government → Society
Benefit to Society
Profit → Benefit to investors
Benefits in the product
Adjusted TruValue

9:22 PM
Raw material;
Virgin raw materials;
Energy;
Worker remuneration;
Payroll benefits;
Cost of capital equipment;
Cost of money capital;
Cost of working capital;
Taxes;
Pro-good expenditures;
Profit.
Price / Sales revenue
PRODUCT: Elements of TruValue
From previous supply chain
RESOURCE DEPLETION
ENERGY SUPPLY CHAIN IMPACT
PEOPLE BENEFIT
PEOPLE BENEFIT
Economic life based depreciation
Benefit to investors
Interest → Benefit to investors
Benefit to Government → Society
Benefit to Society
Profit → Benefit to investors
Benefits in the product
Adjusted TruValue
ALL OF THESE ELEMENTS OF COST / VALUE MUST BE
EXPLODED INTO THE 'TRUCOST/TRUVALUE' ACCOUNTING
AS THE PRODUCT MOVES THROUGH THE SUPPLY CHAIN.

9:22 PM
PRODUCT: Decision 'To Buy' or 'Not-to-Buy'
EASILY ACCESSIBLE TO EVERYONE ENGAGED IN ANY
'BUY' OR 'NOT TO BUY' DECISIONS.

9:22 PM
PRODUCT: Decision 'To Buy' or 'Not-to-Buy'
EASILY ACCESSIBLE TO EVERYONE ENGAGED IN ANY
'BUY' OR 'NOT TO BUY' DECISIONS.
The modern world is driven by advertising and promotion
with the singular purpose of selling product and making
business profit. Advertising and promotion has been made
even more effective by modern technology.
It is high time the same amount of effort was put into
guiding people into making better decisions for themselves
and the planet we all have to live on. .

9:22 PM
May 2014
QUESTIONS? FEEDBACK?
peterbnyc@gmail.com
www.truevaluemetrics.org
@truevaluemetric

PRODUCT ... a very critical link (140517)

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