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- 1. MDIA WHY? SOCIETY NEEDS BETTER METRICS MULTI DIMENSION
IMPACT ACCOUNTING File: MDIA-p3-01-1-WHY-150727.odp Peter Burgess
(c) All rights reserved
- 2. EXPLANATION This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than 50
slidesets. Navigation to all of these is available here: FEEDBACK
is welcome. Please email to Peter Burgess peterbnyc@gmail.com with
a catchy phrase in the subject line so that it gets attention, and
please identify the specific slideset(s) involved. This explanation
is version v150801. The most current text is available at: MULTI
DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
- 3. The GOAL is to design and deploy a system of metrics for
management that accounts for impact on people and planet as
rigorously as double entry accounting accounts for money
transactions that impact profit MULTI DIMENSION IMPACT
ACCOUNTING
- 4. Corporate profit performance over the past fifty years has
been impressive MULTI DIMENSION IMPACT ACCOUNTING
- 5. GDP growth over the past 50 years very strong MULTI
DIMENSION IMPACT ACCOUNTING
- 6. But labor income over the past fifty years not so good.
MULTI DIMENSION IMPACT ACCOUNTING
- 7. And environmental issues getting worse not better. MULTI
DIMENSION IMPACT ACCOUNTING
- 8. This is an unsustainable trajectory for our complex global
socio-enviro-economic system MULTI DIMENSION IMPACT ACCOUNTING
- 9. SOCIO PEOPLE ENVIRO PLANET ECONOMIC MAN BUILT CAPITAL MULTI
DIMENSION IMPACT ACCOUNTING
- 10. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPSOCIO - PEOPLE
- 11. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPSOCIO - PEOPLE
- 12. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPENVIRO - PLANET
- 13. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPENVIRO - PLANET
- 14. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPECONOMIC MAN BUILT CAPITAL
- 15. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPECONOMIC MAN BUILT CAPITAL
- 16. The balance between PEOPLE, PLANET and PROFIT is most
likely unsustainable MULTI DIMENSION IMPACT ACCOUNTING
- 17. The following slides reflect what has happened over the
past millions of years MULTI DIMENSION IMPACT ACCOUNTING
- 18. YELLOW: The PEOPLE piece Human Capital (NC) DIRTY BROWN:
The ECONOMIC piece Man Built Capital (MBC) GREEN: NATURE,
ENVIRONMENT Natural Capital (NC) MULTI DIMENSION IMPACT ACCOUNTING
COLOR KEY
- 19. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 20. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 21. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 22. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 23. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 24. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 25. Trajectory to disaster! This must be changed to this MULTI
DIMENSION IMPACT ACCOUNTING
- 26. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built
Capital Natural Capital
- 27. PEOPLE progressing MBC* efficient PLANET healthy MULTI
DIMENSION IMPACT ACCOUNTING * Man Built Capital Man Built
Structures and Systems
- 28. For the past 50 years, using conventional metrics, the
system has optimized for performance of FINANCIAL CAPITAL but while
ignoring everything else ... MULTI DIMENSION IMPACT ACCOUNTING
- 29. ECONOMIC GROWTH 1970 to 2011 CORPORATE PROFITS ... GDP
LABOR INCOME ... MULTI DIMENSION IMPACT ACCOUNTING 3,600% 1,500%
1,100%
- 30. MULTI DIMENSION IMPACT ACCOUNTING
- 31. According to Federal Reserve data, wages and salaries as a
% of GDP has declined steadily since 1970 MULTI DIMENSION IMPACT
ACCOUNTING
- 32. MULTI DIMENSION IMPACT ACCOUNTING
- 33. In the 1950s and 1960s wages and salaries were gaining
moderately while profits were declining. Since the 1980s profits
have increased strongly while wages and salaries have been
decreasing as a share of GDP. MULTI DIMENSION IMPACT
ACCOUNTING
- 34. MULTI DIMENSION IMPACT ACCOUNTING
- 35. Robert Reich former Secretary of Labor in the 1990s shows
pay rose with productivity until 1979 and then it didn't ... MULTI
DIMENSION IMPACT ACCOUNTING
- 36. MULTI DIMENSION IMPACT ACCOUNTING
- 37. Since 1950 world PER CAPITA GDP has grown more rapidly than
at any previous time ... MULTI DIMENSION IMPACT ACCOUNTING
- 38. MULTI DIMENSION IMPACT ACCOUNTING
- 39. but this is an average that does not mean very much MULTI
DIMENSION IMPACT ACCOUNTING
- 40. Rich countries and rich people have increased their income
and wealth much more significantly than poor countries and poor
people as these data for the USA and the UK show ... MULTI
DIMENSION IMPACT ACCOUNTING
- 41. MULTI DIMENSION IMPACT ACCOUNTING
- 42. but the metrics are not getting it right MULTI DIMENSION
IMPACT ACCOUNTING
- 43. The growth in GDP for the USA over the period from 1945 to
the present has been phenomenal but the HAPPINESS of Americans has
deteriorated in this time. MULTI DIMENSION IMPACT ACCOUNTING
- 44. Corporate money profit performance over the past fifty
years has been impressive MULTI DIMENSION IMPACT ACCOUNTING
- 45. The growth in GDP also has a strong correlation with
increasing stress on planetary resources and the environment. MULTI
DIMENSION IMPACT ACCOUNTING
- 46. The growth in global population is not as serious a problem
as the growth in GDP MULTI DIMENSION IMPACT ACCOUNTING
- 47. MULTI DIMENSION IMPACT ACCOUNTING
- 48. THE CHALLENGE MULTI DIMENSION IMPACT ACCOUNTING
- 49. There has been an amazing improvement in productivity over
the past 40 years and almost all the benefits derived from the
increases in productivity have accrued to owners. MULTI DIMENSION
IMPACT ACCOUNTING
- 50. This is what Business Schools teach and they do it very
well. MULTI DIMENSION IMPACT ACCOUNTING
- 51. In order for the socio-enviro- economic system to be
optimized for people and planet and profit, an improved system of
metrics is an absolutely essential prerequisite. MULTI DIMENSION
IMPACT ACCOUNTING
- 52. and this is what Multi Dimension Impact Accounting (MDIA)
is all about. MULTI DIMENSION IMPACT ACCOUNTING
- 53. REMINDER This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than 50
slidesets. Navigation to all of these is available here: FEEDBACK
is welcome. Please email to Peter Burgess peterbnyc@gmail.com with
a catchy phrase in the subject line so that it gets attention, and
please identify the specific slideset(s) involved. This explanation
is version v150801. The most current text is available at: MULTI
DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
- 54. THANK YOU 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 to other slides in this series: MULTI DIMENSION
IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3