ENABLES BETTER DECISIONS BY ACTORS
- SO THAT ALL ACTIVITIES DELIVER VALUEADD FOR SOCIETY
- SO THAT ALL ACTIVITIES MINIMIZE NATURAL CAPITAL DEGRADATION
- SO THAT ALL ACTORS DO THEIR PART AND ARE HELD TO ACCOUNT
HAS THESE CHARACTERISTCS
- Considers ALL perspectives, not just profits for corporate organization and investors, but also impacts on society and the environment.
- Accounts for all the impacts of energy in corporate processes, the supply chain and embedded in products.
- Accounts for good and bad impacts associated with payroll in corporate operations, the supply chain and embedded in products.
- Accounts for impacts of gross material flows through the system from depletion of natural resources to waste and pollution.
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ENHANCED ACCOUNTANCY
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TVM uses the core framework of conventional accountancy, that is balance sheet accounts and profit and loss account accounts to account for not only financial impact (money and profit), but also social impact and environmental impact.
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RADICAL ACCOUNTABILITY
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There has been accountability of business to the owners (investors / stockholders) with periodic reporting and audit. In the modern day it is time for business to become accountable for impacts on society and the long term sustainability of the environment.
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MOVING THE NEEDLE ON IMPORTANT ISSUES
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Talk is easy, but moving the needle requires a framework for management involving data, plans, action, review and feedback. The fastest progress is achieved with rapid iterations of small steps at the lowest level of the pyramid.
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USING DATA TO ENABLE BETTER DECISIONS BY ALL THE ACTORS
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Big data may be used for academic research, but data for better decisions is often very different. Data should help with understanding and enable rapid action to remove constraints and move the needle rapidly in the right direction.
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METRICS / MULTIPLE UNITS OF ACCOUNT
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Money is used to measure economic performance. Something else is needed to measure and account for social performance and environmental performance. TVM is building on the existing detail measures to establish summary metrics for these dimensions.
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EXTERNALITIES / EVERY PERSPECTIVE OF THE SYSTEM
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In conventional financial reporting, all externaities are ignored. In TVM the externalities are brought into account as well as addressing how the measure of performance changes with different perspectives. For example, profit up but social performance (wages) down.
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STANDARD VALUE PROFILES BASIS FOR COMPARATIVE PERFORMANCE
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TVM standard value profiles (SVPs) are the basis for comparative performance not only for economic performance (profit) but also social performance (social benefits) and environmental performance. SVPs may be used everywhere in the system
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USING PAYROLL PROFILES TO UNDERSTAND SOCIAL IMPACT
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Inequality has grown dramatically in the past several decades because top managers and owners have been rewarded too much and workers paid too little. TVM payroll profiles show this and better enables payrolls to be managed.
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USING ENERGY CONSUMPTION TO REDUCE UNSUSTAINABILITY
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The modern consumption economy is catastrophically unsustainable already with relatively few people middle class and rich. Much of this is assocated with energy throughout the supPly chain and during use. TVM energy profiles enable better management of this problem.
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USING MATERIAL FLOWS TO ADDRESS OUT OF CONTROL PRODUCTION
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Modern industry is consuming resources and stressing the ecosystem in an unsustainable way. Many major material classes exceed the planetary boundaries of sustainability by a large margin. Every business, production system, product and user must be held accountable.
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