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PETER
BURGESS
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Date: 2024-07-24 Page is: DBtxt001.php L07-00-TVM-BRIEF-02
TVM BRIEF #02
image missing Numbering the Triple Bottom Line

Accounting for ALL the Capitals
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PROBLEMS & POSSIBILITIES
MANY POOR OUTCOMES / MUCH AMAZING POTENTIAL
GO TOP SiteNav L0700-SN-01-PROBLEMS-POSSIBILITIES Open L07-01-PROBLEMS-POSSIBILITIES
MANY MASSIVE PROBLEMS
ALL SORTS OF SOCIAL DISASTERS
Terrible Poverty Malnutrition Terrorism Genocide
EXTREME WEATHER
Somalia Drought Mozambique Flood Eye of storm USA Hurricane
ENVIRONMENTAL DEGRADATION
Deforestation Strip Mining Power Emission Traffic Pollution
Bottom line ... my generation of leaders has made it possible for a lot of very bad things to happen, and very little action to address these issues and hold the key actors responsible.
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MANY AMAZING POSSIBILITIES USING TECHNOLOGY
MEDICAL SCIENCE MATERIALS ELECTRONICS
Genetic code / DNA Antibiotics Composites Specialized steel IBM Microsoft
COMMUNICATIONS SOCIAL MEDIA PASSENGER TRANSPORT
Apple Print Media Facebook Twitter Passenger Rail Passenger Car
LOGISTICS AEROSPACE DIGITAL TECHNOLOGY
Container Ships Freight rail Jet engines Passenger Aircraft AI IoT
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PROGRESS & PERFORMANCE
HOW MUCH HAS THE NEEDLE MOVED?
GO TOP SiteNav L0700-SN-03-PROGRESS-PERFORMANCE Open L07-03-PROGRESS-PERFORMANCE
SOCIAL CAPITAL
GDP UP ... GPI FLATLINE PRODUCTIVITY UP, NOT WAGES TOP 1% ... HAS IT ALL
  • DESTABILIZING INEQUALITY
  • INADEQUATE WAGE RATES
  • OUTSOURCED LABOR
  • WEAK SOCIAL SAFETY NET
NATURAL CAPITAL
CATASTROPHIC DEPLETION AND DEGRADATION
  • EXPLOITED LAND
  • DEGRADED WATER
  • POLLUTED AIR
  • DEPLETED RESOURCES
  • LOSS OF BIODIVERSITY
  • UNSTABLE ECOSYSTEMS
ECONOMIC CAPITAL:
  • FINANCIAL CAPITAL
    EXCESSIVE CONCENTRATION OF WEALTH
  • PHYSICAL CAPITAL
    OBSOLETE AND DEGRADED INFRASTRUCTURE
  • INTANGIBLE CAPITAL
    STRONG KNOWLEDGE / WEAK EDUCATION
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SYSTEM OVERVIEW
SOCIO-ENVIRO-ECONOMIC SYSTEM
GO TOP SiteNav L0700-SN-02-SEES-OVERVIEW Open L07-02-SEES-OVERVIEW
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IT'S A COMPLEX WORLD!
Managing complexity is difficult. In modern times, the system has been managed by and for the benefit of those who own financial capital, now referred to as financialization. Nothing else has been seriously managed.
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TRIPLE BOTTOM LINE ... ALL THE CAPITALS
PEOPLE PLANET PROFIT
SOCIAL CAPITAL NATURAL CAPITAL ECONOMIC CAPITAL

SOCIO

ENVIRO

ECONOMIC
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CONSIDER ALL THE PERSPECTIVES ... EMPOWER ALL THE ACTORS
TECHNOLOGY

Enabler of progress
ORGANIZATIONS
More than profit
PEOPLE

Men, women & children
PLACE

Where people live
PRODUCTS

Quality of Life
One of the biggest priorities should be to change the metrics of progress and performance so that they are no longer dominated by corporate profit growth, national GDP growth and the growth of stock market valuations. If you change the way you score the game, you will change the way the game is played!
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STATE / CAPITALS
THE STATE OF ALL THE CAPITALS
GO TOP SiteNav L0700-SN-04-STATE-CAPITALS Open L07-04-STATE-CAPITALS
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SOCIAL, NATURAL & ECONOMIC CAPITAL ... NOT JUST FINANCIAL CAPITAL
SOCIAL CAPITAL NATURAL CAPITAL ECONOMIC CAPITAL
SOCIO ENVIRO ECONOMIC
HUMAN CAPITAL RELATIONAL LOCATIONAL CULTURAL SPIRITUAL LAND

WATER

AIR

RESOURCES

BIODIVERSITY

ECOSYSTEMS
PHYSICAL
LAND & BUILDINGS INFRASTRUCTURE PROCESSES EQUIPMENT
WORKING CAPITAL
FINANCIAL
MONEY GDP GROWTH CORPORATE PROFITS CAPITAL MARKETS
INTANGIBLE
KNOWLEDGE EDUCATION GOVERNMENT SECURITY
Top line performance reporting must address three components
(1) impact of activities on social capital;
(2) impact of activities on natural capital; and,
(3) impact of activities on economic capital.


Top line progress reporting must include changes for all capital components:
(1) all of social capital;
(2) all of natural capital; and,
(3) all of economic capital.


Note that this is exactly what conventional double entry financial accounting does for the money transactions related to a 'reporting entity' while ignoring all the impacts that are outside this very lmited reporting envelope. This was an understandable simplification in the early days of the industrial revolution during the reign of Queen Victoria, but is completely inapprorpriate well into the 21st century.
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FLOW / ACTIVITIES
EXTRACTION / PRODUCTION / LOGISTICS / USE / WASTE / POLLUTION
GO TOP SiteNav L0700-SN-05-FLOW-ACTIVITIES Open L07-05-FLOW-ACTIVITIES
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SECTOR / INDUSTRY / PROCESSES
SPECIALIZATION IS VITAL FOR EFFICIENCY AND ECONOMIC PRODUCTIVITY
MINING LOGGING ENERGY STEEL
REFINERIES
PULP & PAPER
SHIPPING RAIL PIPELINES TRUCKING ROADS RAIL
MANGROVE FISHERIES AGRICULTURE RETAIL FUEL
WASTE
Sector specialization most always improves corporate profit performance, but over the years, impact throughout the product life cycle has not been accounted for. This has to change.
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STREAMS / STRANDS / STRINGS
ACCUMULATED IMPACT IS EMBEDDED IN EVERY PRODUCT
NATURE EXTRACTION
SUPPLY CHAIN PRODUCTION
USE
POST USE
Everything that is used to support a high standard of living and quality of life has a long supply chain, then production and distribution, then use, and then a post use waste chain. For metrics to be meaningful, all of these stages must be brought into account.
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CONSIDER ALL THE PERSPECTIVES
TECHNOLOGY

Enabler of progress
ORGANIZATIONS
More than profit
PEOPLE

Men, women & children
PLACE

Where people live
PRODUCTS

Quality of Life
Better results will be achieved when decisions are based on impact not only for corporate financial profit, but for all the dimensions of the socio-enviro-economic system.
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FLOW / ACTORS
THERE IS NATURE ... AND THERE ARE PEOPLE
GO TOP SiteNav L0700-SN-06-FLOW-ACTORS Open L07-06-FLOW-ACTORS
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THE ESSENTIAL CONTRIBUTION OF NATURE
THE ENABLING FOUNDATION FOR EVERYTHING
MANGROVE EXTRACTION
BIODIVERSITY ATMOSPHERE WATER RAIN-FOREST
Left to itself ... nature adjusts and is sustainable ... but it takes time. Humankind is in a hurry, and this process is being disrupted. It will not end well! People need to make better decisions.
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PEOPLE HAVE MULTIPLE ROLES!
PEOPLE ARE BENEFICIARIES, CONTRIBUTORS AND DECISION MAKERS
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PEOPLE ARE AT THE CENTER OF EVERYTHING
AS INDIVIDUALS

Doing the work
AS MANAGERS

In organizations
AS INVESTORS

In finance
AS CUSTOMERS
buying stuff
AS LEGISLATORS
In government
AS PARENTS

Parenting
IN COMMUNITY

Friends / Society
HELPING OTHERS

Volunteering time
HELPING OTHERS

Donating money
SPEAKING OUT

on Social Issues
Everything should be about people. Unfortunately the focus of decision making for many decades has been more on profit than on people, and the environment has been ignored. This has been good for a few, but too many have not seen any benefits.
In poor economies there is a correlation between quality of life and consumption, but as the population gets a better quality of life, this correlation weakens, Neverthless, if there is going to be more consumption, there is also going to be more production, and with this more environmental degradation, unless production processes are improved.
People have made enormous technological progress but very little of this has been applied to improving the social and environmental performance. Almost all of the effort has gone into applying technology to improve profit performance.
This can be changed. This must be changed.
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PEOPLE MAKE DECISIONS ABOUT CONSUMPTION
People make decisions that optimize quality of life for themselves and their families. For most people, consumption is a big part of quality of life.
Food - Vegetables Food - Meat Housing Clothes Mobility Recreation
CONSUMPTION DRIVES ECONOMIC ACTIVITY
Livestock Crop agriculture Petrochemicals Steel Auto Production Logistics
CONSUMPTION ALSO DRIVES ENVIRONMENTAL STRESS
GHGs Use of energy Extreme weather Deforestation Water shortage Plastic pollution
More consumption correlates to a better quality of life up to a certain level. Beyond that level more consumption may well have negative consequences, as for example too much food may result in obesity and diabetes or worse.
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INPAGE
NAVIGATION
(1) PROBLEMS
POSSIBILITIES
(2) SYSTEM
OVERVIEW
(3) PROGRESS
PERFORMANCE
(4) STATE
CAPITALS
(5) FLOW
ACTIVITIES
(6) FLOW
ACTORS
(7) EFFECTIVE
MANAGEMENT
(8) PETER
BURGESS


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