Abstract
<jats:p>The rise of artificial intelligence (AI) is transforming fashion waste management by enabling innovative solutions for sorting, recycling, and resource optimization. These technological advances, however, introduce complex ethical, governance, and social challenges. This study adopts a literature review and case-based approach to examine how principled leadership and robust governance frameworks ensure that AI contributes to sustainability goals without compromising transparency or stakeholder trust. The research shows that the effectiveness of AI in waste management relies on both technical capabilities and the ethical decisions of organizational leaders. By integrating sustainability into corporate strategy, fostering stakeholder engagement, and applying measurable governance indicators, leaders can guide AI adoption toward meaningful environmental and social outcomes while maximizing operational efficiency. By combining innovative AI applications with ethical leadership, this study provides actionable insights for fashion organizations seeking to advance circular practices.</jats:p>