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#7
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ACTIVITIES
in the SOCIO-ENVIRO-ECONOMIC SYSTEM
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CONSIDER ALL THE PERSPECTIVES
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ACTIVITIES HAVE IMPACT ON ALL THE CAPITALS
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NATURE
Essential enabler
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ORGANIZATIONS
More than profit
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PEOPLE
Quality of Life
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PLACE
Where people live
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PRODUCTS
Wellness
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Some people are very fortunate, and others less so. The accident of birth should not be the main determinant of success and a happy productive life. There should be opportunity for everyone.
The characteristics of the place make a big difference to quality of life. The choices people make regarding the products purchased and consumed impact the person, the economy and the environment.
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ACTIVITIES BEING CHANGED BY TECHNOLOGY
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PASSENGER TRANSPORTATION
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HORSE-POWER
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STEAM-TRAINS
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AUTOMOBILES
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HI-SPEED TRAINS
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AIR TRAVEL
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Consumption is driving the modern economy. It looks like success as long as the depletion of natural resourcs and the degradation of the environment is ignored.There is strong correlation between better quality of life and more consumption in poor economies, but less so in mature rich econmies. Rich economies are increasingly associated with waste, luxury and inefficiency.
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CARGO TRANSPORTATION / LOGISTICS / SUPPLY CHAIN
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FREIGHT TRUCK
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FREIGHT TRAIN
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CONTAINER SHIP
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AIR CARGO
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PACKAGE EXPRESS
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Consumption is driving the modern economy. It looks like success as long as the depletion of natural resourcs and the degradation of the environment is ignored.There is strong correlation between better quality of life and more consumption in poor economies, but less so in mature rich econmies. Rich economies are increasingly associated with waste, luxury and inefficiency.
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BASIC NEEDS CONSUMPTION IS ESSENTIAL
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FOOD
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WATER
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SHELTER
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SECURITY
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HEALTH
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Throughout history quality of life has been constrained by the resources available to consume. In ancient times this was to do with the availability of food and water in the natural world, and over time these natural resources were augmented by agriculture and the engineering of water systems. Without food and water, people died and died very young. Over time knowledge and technology improved, availability of food and water increased and population grew. Where basic needs are satisfied, people survive for upwards of 70 years.
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MORE CONSUMPTION GIVES BETTER QUALITY OF LIFE
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CONSUMPTION
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PROCESSES
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MATERIALS
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ENERGY
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PAYROLL
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To the extent that more money and wealth enables more consumption, people may have a better quality of life. This is to a large extent the justification for the management metrics that are dominant in the modern world. There is the implicit assumption that more is better, and what better than more and more consumption. Consumption has the dual advantage that it helps to dnable a better quality of life for the consumer, but it also increases demand for the business community that is engaged in the production and delivery of goods and services for consumption. With increased demand comes higher prices and more profit. This is the exact opposite of a perfect storm, it is the basis for an economic bonanza.
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CONSUMPTION BY ULTRA RICH HAS BAD IMPACTS
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CONSUMPTION
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AIR TRAVEL
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YACHTS
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HUGE MANSIONS
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TAX HAVENS
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Consumption by the ultra rich has bad impacts ... but excessive consumption by everyone also is a problem. In rich countries, for example, too many people are eating too much and become obese and unhealthy. Consumption is not only enabling a better quality of life, but it is also the source of huge amounts of waste that are polluting noth the land and the oceans to the detriment of nature. As long as money and wealth is the dominant management metric, there can be little incentive to optimise the functioning of the socio-enviro-economic system in a sustainable manner.
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ACTIVITIES OF CORPORATE ORGANIZATIONS
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ALL HAVE SUBSTANTIAL IMPACT ON SOCIETY AND THE ENVIRONMENT
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DIGITAL TECH
Google
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OIL & GAS
ExxonMobil
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AERO ENGINES
Rolls Royce
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BANKING
HSBC
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ENGINEERING
GE
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FOOD
Unilever
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Most of the global economy comprises products that are produced by very big organizations that are complex with multiple factories in many different locations, and supply chains that span the globe. It is not easy to understand these companies in a way that makes it possible to hold them accountable for their behavior. Nevertheless, despite their complexity, they are able to communicate their profit performance to investors, but not their social impact nor their environmental impact, even where these are material. This has to change.
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WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
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MINING
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LOGISTICS
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ENERGY
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ELECTRICITY
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PRODUCTION
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OIL REFINERY
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Every sector, every industry, has become very specialized and over a long period of time has been optimized for profit performance. Profit performance has been exceptional for decades, but too little attention has been paid to social and environmental issues. This must change. Process improvements are essential and must focus in improving social impact and environmental impact as well as merely being more profitable.
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WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
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MINING
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LOGISTICS
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ENERGY
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FOOD - Vegetables
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HOUSING
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HEALTH
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AG-GRAIN
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PRODUCTION
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REFINERIES
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FOOD - Meat
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EDUCATION
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HEALTH
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AG-LIVESTOCK
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RAIL
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ELECTRICITY
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CLOTHES
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MOBILITY
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HEALTHCARE
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Every sector, every industry, has become very specialized and over a long period of time has been optimized for profit performance. Profit performance has been exceptional for decades, but too little attention has been paid to social and environmental issues. This must change. Process improvements are essential and must focus in improving social impact and environmental impact as well as merely being more profitable.
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STREAMS / STRANDS / STRINGS
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WHAT ARE ALL THE IMPACTS FOR THE LIFE CYCLE OF PRODUCTS?
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NATURE
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EXTRACTION
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SUPPLY CHAIN
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PRODUCTION
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USE
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WASTE
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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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PEOPLE ... THE ULTIMATE ACTORS
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PEOPLE MAKE DECISIONS ABOUT THE CONSUMPTION OF PRODUCTS
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Food - Vegetables
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Food - Meat
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Housing
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Clothes
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Mobility
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Recreation
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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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PEOPLE AS CONTRIBUTORS ... AS DECISION MAKERS
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AS INDIVIDUALS
Live life ... work & family
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IN ORGANIZATIONS
Do the work ... make the decisions
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AS INVESTORS
Allocate financial resources
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EMPOWER THE INDIVIDUAL AND ENABLE BASIS FOR A BETTER LIFE
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Every individual is different, both in what they are capable of doing and how they want to live their lives. People should have the freedom to succeed in all sorts of good ways, and should be helped so that they never fail. People need the facts about themselves and everything around them.
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ESTABLISH ACCOUNTABILITY FOR PEOPLE WITHIN ORGANIZATIONS
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Companies are important drivers of the economy. Within companies it is people that make the decisions, and for many decades the dominant metric for success has been profit without taking into consideration impact on society and nature. This must change. Profit performance on its own is not enough!
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IMPROVE DECISION PROCESS FOR INVESTMENT DECISIONS
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The allocation of capital shapes the future of the economy. People make the decisions about what investments should be made and have been guided mainly by the potential for growth of financial wealth without taking into consideration issues relating to society and the environment. These other issues matter.
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PLACE
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THE CRITICAL VALUE ADD FROM LOCATIONAL CAPITAL
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Cities and Communities are where people live their lives
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MAIN ST.
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SCHOOLS
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CHURCHES
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POLICE
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RECREATION
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HOSPITALS
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SUBURB
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UNIVERSITIES
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HOUSING
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FIRE
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RELAXATION
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PERSONNEL
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Everything is needed in the place to enable Quality of Life. Everything is interconnected. Nothing important can be missing ... multi-sector is essential
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More than 200 countries ... with vastly different characteristics
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Data at the country level useful for broad comparisons, not so much for management of performance
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PRODUCTS
PRODUCTS IMPACT PEOPLE AND ORGANIZATIONS AND NATURE
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NEEDED FOR A DECENT QUALITY OF LIFE
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Food - Vegetables
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Food - Meat
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Housing
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Clothes
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Mobility
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Recreation
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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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PRODUCTS START WITH NATURE AND HAVE A LONG LIFE CYCLE
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NATURE
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SEA
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STEEL
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EATING
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WASTE
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RECYCLING
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NATURE
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ROAD
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REFINING
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CONSUMING
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LANDFILL
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RECYCLING
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EXTRACTION
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RAIL
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POLLUTION
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DRIVING
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FLOODS
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NO WASTE
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Products enable consumption that improves quality of life.
The production of products is a critical economic activity and source of profit for companies.
Production and products are only sustainable if they do not degrade the environment. Most modern industrial process are catastrophically unsustainable.
Smarter processes are needed together with smarter products, smarter consumers and systems to enable a circular economic model.
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