Mdia p3-04-human-capital-150420

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-04-HUMAN-CAPITAL-150420.odp Peter Burgess (c) All rights reserved
MDIA
HUMAN CAPITAL
IS ALL ABOUT
PEOPLE

2. MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.
SLIDESET STILL IN DEVELOPMENT.
UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS

3. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
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Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Genetic makeup
About Human CapitalAbout Human Capital
Our nurturing
Our surroundings
Our education
Our health care
The Past
Our food
Our water
Present Future
Accumulated
past
The present
value of the
future
The situation
in the
present
Opportunities
based on the
characteristics
of the PLACE
Opportunities
based on the
capabilities of
the individual

4. 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
Human
Capital
Food
Water
Shelter
Clothes
Health
Education
Skills
Recreation
Culture
Religion
Security
Energy
Mobility
Our genetic makeup
About Human CapitalAbout Human Capital
Our nurturing
Our surroundings
Our education
Our health care
The past
Our food
Our water

5. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Wellness
State of health is a
major determinant of
quality of life. With
good health, everything
is possible, without
good health, much less.
A big part of wellness
is determined by
lifestyle what we eat
and drink and how
we exercise
Quality of Life
Family and friends
Community

6. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Capabilities
Capabilities are
enhanced by
education and
skill training.
They are also
enhanced by
lifetime learning.
Quality of Life
Family and friends
Community
Opportunities

7. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Opportunities
Quality of Life
Family and friends
Community
Opportunities

8. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Financial Wealth
A modest amount
of financial wealth,
enough to provide
financial security is
valuable and reduces
stress enormously.
A vast amount of
financial wealth adds
rather little to quality
of life … but does give
bragging rights in a
money centric
society
Quality of Life
Family and friends
Community
Opportunities

9. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Housing
An adequate amount
of shelter is a basic need.
Quality of Life
Family and friends
Community
Opportunities
Security

10. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Surroundings
Surroundings matter
especially for children.
Children learn from
their surroundings.
Quality of Life
Family and friends
Community
Opportunities
Security

11. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Security
Security … being safe is
important to quality of life
Quality of Life
Family and friends
Community
Opportunities
Security

12. 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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Family and friends
are central to quality
of life because, above
all else, people are
social beings
Quality of Life
Family and friends
Community
Opportunities
Security

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
Wellness
About Human CapitalAbout Human Capital
Capabilities
Financial wealth
Housing
Surroundings
Community
Community is something
beyond family and friends.
Community is place, and
where there is access to
the goods and services that
are needed. Community
is where there is access
to education and health
services, to utilities, etc
Quality of Life
Family and friends
Community
Opportunities
Security

14. Human Capital quantification.
Conventional wisdom suggests that quantification if
human capital cannot be done.
But surely it must be done or the default in economic
analysis is going to be that the value of human capital
is zero.
MULTI DIMENSION IMPACT ACCOUNTING

15. What is the value of a baby?
What is the value of your baby? The usual answer ends
up being 'priceless' or some equivalent of this idea.
Clearly a baby has a huge value … and we should be
able to assign a number to 'priceless' so that this
number can figure in all the other computations that are
done about society, the environment and the economy.
MULTI DIMENSION IMPACT ACCOUNTING

16. What value a death?
The TrueValueMetrics position is that a human being is
an asset with a positive value.
Death means one less human being. Human Capital
goes down when a person dies.
It does not matter where a person is, or what station in
life, human capital goes down when an individual dies.
MULTI DIMENSION IMPACT ACCOUNTING

17. Operating costs and depreciation
Equipment has operating costs and is depreciated over its
life. Somewhat similar concepts need to be applied within
Human Capital.
A human being needs food and drink, shelter, clothes, travel
expenses, healthcare expenses, recreation, etc. in order to
live. There is also education and skills training to better
oneself.
A human being works to satisfy these needs. This may be
self employment as in subsistence agriculture or it may be
paid employment in an organization. This income pays for
the things people need, and any surplus increases an
individuals financial capital.
MULTI DIMENSION IMPACT ACCOUNTING

18. Impact … cost and contribution
Equipment is used to add value in the production process.
A human being uses his/her time and capabilities to add
value to the work they have. Within the workplace, this
contribution results in profit for the organization. This money
dimension is incorporated into economic statistics.
A human being also uses high/her time to work on things
that are unpaid but important to family and society. This
includes 'parenting' which benefits children. This includes all
sorts of pro-good activities that have value but are not
transacted in money. These non-money dimension is
ignored by economic statistics.
MULTI DIMENSION IMPACT ACCOUNTING

19. Needs and Wants
The value associated with PRODUCTS (goods and
services) that satisfy needs and make survival possible is
huge.
The same PRODUCTS when they are merely 'wanted' by
the buyer have a much lower value.
The marketplace for PRODUCTS is driven by a powerful
system of business advertising and public relations. As a
result many PRODUCTS are perceived as needs when they
are actually wants … and indeed just low value wants.
MULTI DIMENSION IMPACT ACCOUNTING

20. 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