Study on the link between working capital management and sustainability issues
Vahid-Golpayegani, Sepideh (2024)
Vahid-Golpayegani, Sepideh
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051612642
https://urn.fi/URN:NBN:fi:amk-2024051612642
Tiivistelmä
This bachelor’s thesis explores the complex relationship between working capital management and sustainability within organizational settings, through qualitative research methods, theoretical frameworks, and insights from industry professionals. The study aims to address the central re-search question: How is working capital management linked to sustainability issues?
The findings reveal a close connection between these two areas, highlighting the importance of balancing short-term financial goals with long-term environmental and social objectives. Interviews with professionals from various industries show an increasing understanding of the importance of integrating sustainability principles into working capital management strategies. Tactics such as optimizing inventory levels, negotiating favourable payment terms with suppliers, and ensuring timely collection of receivables are shown to not only enhance financial security but also support broader sustainability objectives. The application of theoretical frameworks such as Shareholder Theory, Stakeholder Theory, Legitimacy Theory, and Corporate Accountability Theory provides valuable insights into the underlying mechanisms influencing this connection.
Overall, this thesis contributes to the understanding of sustainable business practices by informing the connections between working capital management and sustainability. By acknowledging the relationship between working capital decisions and environmental and social impacts, organizations can work towards more responsible and flexible business models that benefit both share-holders and society as a whole.
The findings reveal a close connection between these two areas, highlighting the importance of balancing short-term financial goals with long-term environmental and social objectives. Interviews with professionals from various industries show an increasing understanding of the importance of integrating sustainability principles into working capital management strategies. Tactics such as optimizing inventory levels, negotiating favourable payment terms with suppliers, and ensuring timely collection of receivables are shown to not only enhance financial security but also support broader sustainability objectives. The application of theoretical frameworks such as Shareholder Theory, Stakeholder Theory, Legitimacy Theory, and Corporate Accountability Theory provides valuable insights into the underlying mechanisms influencing this connection.
Overall, this thesis contributes to the understanding of sustainable business practices by informing the connections between working capital management and sustainability. By acknowledging the relationship between working capital decisions and environmental and social impacts, organizations can work towards more responsible and flexible business models that benefit both share-holders and society as a whole.