Natural capital is now included in decision making.
The word "capital" was first used by merchants in Italy ~ 1300.
The purpose of double entry is to measure increases and decreases with a frame.
Wedgewood had a cashflow problem and an accumulation of stock. What should he do? He looked at his book. They told him to produce as many as possible, because it showed him the difference between fixed and variable costs.
This caused the mass marketing revolution, and the emergence of the second capital: manufacturing.
Two broad new forms of wealth have emerged, caused by the networked computer. First is immaterial wealth. Second is the wealth of nature or the products of susteinablity..
Shares of companies like Facebook have astronomical value on the stock market. The value can't be seen in balance sheets.
Used to be 17% was in intangibles. The rest in tangibles. In 2009, intangibles were the rest.
Starting in '89, with the Exxon Valdez wreck, and the GRI was started.
Six capitals: financial, manufacturing, intellectual, human, social and natural.
Q: What causes accounting scandals, and do laws like Sarbanes have a positive effect? A: Sarbanes hasn't helped. We still have trouble saying what the value of an asset is. But the main cause is human nature.
Q: Comments on the value placed by investors, to make informed decisions? A: There is an advantage to knowing the principles of responsible investment. There is financial return from good governance. IIRC...
Q: Used to be regulatory risk was tops. Now it's reputational. Is there a connection between... What will be the source of thse who demand adoption of principles? A: Consumers. See Unilever/Dove. Interest groups. Consumer backlash against palm oil.
Q: I work in local government. How do these capitals pertain to local gov as units or... A. in 2000, the largest economies were coprporations. All these capitals are applicable, though. And they are connected.