An exploratory study on the impact of ESG on business performance: Focusing on listed companies in Korea and Taiwan

This study investigates the impact of Environmental, Social, and Governance (ESG) management on the performance of listed companies in Korea and Taiwan, aiming to derive strategic implications for businesses in these nations. Korea and Taiwan, recognized as advanced economies in Asia due to their rapid post-World War II economic growth, exhibit distinct differences in ESG implementation strategies. Through the analysis of data from companies in both countries, this empirical research employs Tobin’s q ratio as the metric for assessing business performance. The findings indicate that, in contrast to Korea—where government policies and the initiatives of large corporations significantly foster ESG management practices—Taiwan displays a lower propensity towards ESG adoption, attributed to the predominance of small and medium-sized enterprises and specific geographical characteristics. This paper demonstrates the influence of ESG management on a firm’s long-term success and market competitiveness, proposing it as a viable strategy for value creation. By revealing the correlation between ESG practices and business performance, the study provides practical insights for the formulation of policies concerning ESG management, investment, and strategic planning.