Supply chain sustainability
Supply chain sustainability

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Supply chain sustainability

3 The financial perspective

Described image
Figure 5 The financial perspective

Earlier you looked at Crandall et al.’s (2015, p. 602) definition of sustainability for a business as ‘the ability to keep operating successfully’; in other words, the ability of administrators to maintain an organisation over the long term.

However, the definition of financial sustainability, the second perspective of the sustainable supply chain that we address in this course, depends somewhat on the nature of the organisation. Specifically, it may vary between for-profit organisations and non-profits, as well as on the business structure, revenue structure and overarching goals of the organisation. For both for-profit and non-profit organisations, financial capacity consists of resources that give the organisation the ability to carry out its mission, seize opportunities and react to unexpected threats while maintaining general operations of the organisation. According to Woods Bowman at DePaul University in the US, ‘financial sustainability’ refers to the ability to maintain financial capacity over time (Bowman, 2011). Regardless of an organisation’s for-profit or non-profit status, the challenges of establishing financial capacity and financial sustainability are central in keeping the supply chain sustainable.

BB849_1

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371