In February - my colleague Elizabeth Castillo from Arizona State University was the guest on the Humanistic Management Lunch and Learn. Her topic was Social Accounting and how to think differently about resources. She brought up an interesting concept - constructive capitalism.
Here are some of my notes:
If we want a more humanistic capitalism, or a more sustainable capitalism, we are defining success as something sustainable.
How it works: by integrated or social accounting it helps you build capital or capacity.
Focusing only on money as capital – tends to be extractive – and not sustainable – because extraction – never is.
If – however, you develop capabilities/capital, you are being constructive. You build more and more capability and then the possibilities grow. It’s not extractive, it’s constructive.
Our problem is we tend to think of capital - as money and that's too narrow. If we think of capital in terms of our capabilities, we think differently about success and we think differently about the values of our various capabilities and the support and investment in those various capabilities.
Social Accounting or integrated reporting helps you capture all your capabilities and therefore – all your possibilities in a way that only accounting for money – does not.
This sort of - accounting can also be used for personal growth as well as organizational growth. What are my personal capabilities and how might I nurture them and ensure their and therefore my growth? This question will probably lead me to value my friendships and time invested in my friendships more highly than if I am only looking at my financial situation.
Here are some of my notes:
If we want a more humanistic capitalism, or a more sustainable capitalism, we are defining success as something sustainable.
How it works: by integrated or social accounting it helps you build capital or capacity.
Focusing only on money as capital – tends to be extractive – and not sustainable – because extraction – never is.
If – however, you develop capabilities/capital, you are being constructive. You build more and more capability and then the possibilities grow. It’s not extractive, it’s constructive.
Our problem is we tend to think of capital - as money and that's too narrow. If we think of capital in terms of our capabilities, we think differently about success and we think differently about the values of our various capabilities and the support and investment in those various capabilities.
Money capability is not our only capability.
Humans represent another capability your organization has. So are the raw materials (which probably come from natural
resources).
Social Accounting or integrated reporting helps you capture all your capabilities and therefore – all your possibilities in a way that only accounting for money – does not.
This can also be used for personal purposes.
For instance, my company – lost money last year. Not a lot, but it was my first year net negative. On the other hand, I accomplished so many things. I published a book, got a 5 year contract with the government, and more. I increased human capabilities
through relationship building for instance.
I feel like I’m way more capable now. But if you just look at my balance
sheet – you would not know that. This is the benefit of social or integrated accounting. It helps me look at all my capitals/capabilities and how I might leverage them in the future.
This sort of - accounting can also be used for personal growth as well as organizational growth. What are my personal capabilities and how might I nurture them and ensure their and therefore my growth? This question will probably lead me to value my friendships and time invested in my friendships more highly than if I am only looking at my financial situation.
If you want to learn more about Elizabeth - here is her professional website: https://asu.pure.elsevier.com/en/persons/elizabeth-ann-castillo
If you want to learn more about the lunch and learn and the international humanistic management association - visit: http://humanisticmanagement.international/
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