Evaluating the interrelationships among ESG dimensions in Taiwanese enterprises through a structural equation modeling approach

This study investigates the structural interrelationships among Environmental, Social, and Governance (ESG) dimensions in Taiwanese enterprises, aiming to localize global ESG frameworks and integrate them with Total Quality Management (TQM). Using MSCI ESG indicators, data were collected from 202 certified firms and analyzed through Structural Equation Modeling (SEM) with Confirmatory Factor Analysis to ensure reliability and validity. Results confirm significant bidirectional relationships: environmental practices positively influence social engagement and governance mechanisms, while social responsibility reinforces governance integrity. Weak indicators, such as renewable energy adoption and public welfare participation, highlight underdeveloped areas requiring refinement. Theoretically, this study advances sustainability research by contextualizing global ESG frameworks within Asian markets, validating their structural interdependence, and proposing an integrated ESG–TQM model. Practically, it provides managers with actionable guidance to institutionalize governance transparency, strengthen environmental responsibility, and expand social engagement. Importantly, by establishing an empirical framework for ESG interdependence, this work directly contributes to the United Nations Sustainable Development Goals (SDGs), particularly targeting SDG 12 (Responsible Consumption and Production) by promoting sustainable management practices and SDG 13 (Climate Action) through formalized environmental frameworks. These contributions offer a novel pathway for resilience, competitiveness, and long-term value creation in Taiwanese SMEs.