AI-Driven Sustainability Accounting and Auditing for Enhancing Ethical Practices in Fashion Manufacturing Companies

This study investigates the role of AI-driven sustainability accounting and auditing in enhancing ethical practices within fashion manufacturing companies. Using a convenience sample of 105 accounting and auditing practitioners, the research examines key determinants, including sustainability accounting and auditing practices, perceived benefits of AI, AI-related knowledge, and sustainability accounting disclosures. The results indicate that all constructs, except sustainability reporting, significantly influence ethical practices, highlighting the importance of leveraging AI technologies to improve transparency, accountability, and responsible resource management. Additionally, the study identifies perceived challenges, such as technical complexity, high implementation costs, and data privacy concerns, which can limit the effective adoption of AI systems. These findings offer practical guidance for managers seeking to integrate AI into sustainability accounting, reduce fashion waste, and foster ethical decision-making while supporting compliance and stakeholder trust.