MAN BUILT CAPITAL comprises a whole range of things that mankind has developed over the years to make life better. The growth of knowledge over the past few hundred years has been remarkable, and this knowledge has been applied in all sorts of ways to improve quality of life. At the same time the amazing technology that has been created has also been used to do intentional damage. In addition the application of technology has also results in unintentional damage to the environment upon which everything depends. Productivity which helps to make products available also results in unemployment and underemployment ... something not measured when business profits are computed and reported. Society will be better off when there are better metrics that take into account not only the profit of the organization, but also the impacts on people and planet.

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-05-0-MAN-BUILT-CAPITAL-151010.odp Peter Burgess (c) All rights reserved
MDIA
MAN BUILT CAPITAL

2. CONTEXT
This slideset is a Work-in-Progress
and will be updated from time to time.
It is part of a series that aims to
describe the extremely complex
socio-enviro-economic system that
we live in, and how better metrics will
make this system work better.
TRUE VALUE ACCOUNTING

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

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

11. OPPORTUNITY
Everything that is MAN BUILT can be
changed. 21st Century technology
enables efficiency that has not been
possible in the past. Better metrics
will give incentive to allocating
resources to phase out inefficient
and damaging old processes.
TRUE VALUE ACCOUNTING

12. 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

13. 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

14. Components of Man Built Capital:
... Financial
... Physical
... Knowledge
... Institutional
MULTI DIMENSION IMPACT ACCOUNTING

15. MULTI DIMENSION IMPACT ACCOUNTING
Money Government
Laws/Rules
Infrastructure
Industry
Mining
Energy
Waste
Retail
Logistics
Knowledge
Technology
Financial
Physical
Knowledge
Institutional
Financial PhysicalKnowledgeInstitutionalMBC
Water
Sewer
Regulations
Security
Private
Sector
Public
Sector
Energy
Buildings
Banks
Capital
Markets
Insurance
Roads
Transport
Land
Research
COMPONENTS OF MAN BUILT CAPITAL (MBC)
Etc.
Organizations
Securitization
Products

16. 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
Financial Capital
About Man Built Capital

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

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

19. 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

20. 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

21. ● 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

22. 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

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
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?

24. 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

25. 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
Financial Capital
About Man Built Capital
Institutional
Capital
Government,
Rule of Law,
Companies,
Organizations.
Systems for:
Health
Education,
Banking,
Social Services,
Security,
etc.

26. 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

27. 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

28. 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
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.

29. 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

30. 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

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
Financial Capital
About Man Built Capital
Knowledge
Capital
Mathematics
Physics
Biology
Chemistry
Science of materials
Computer science
Information technology
Biotechnology
Artificial intelligence
Robotics

32. 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

33. 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

34. 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. Better metrics
will help to enable these changes.
MULTI DIMENSION IMPACT ACCOUNTING

35. 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

36. REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
100 slidesets. Navigation to these is available here:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
More about the True Value Metrics initiative is at:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav
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) or webpage involved.
TRUE VALUE ACCOUNTING

37. THANK YOU
Some links and contact information:
Email 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 resources:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav#1
TRUE VALUE ACCOUNTING