Integrating explainable AI and corporate social responsibility for sustainable practices

With expanding environmental sustainability and digital transformation redefining business practices, the hosipitality industry is under increasing pressure to ensure that explainable artificial intelligence (XAI) matches corporate social responsibility (CSR). Despite the growing interest in sustainability, little research has been undertaken to determine how digital CSR disclosures improve environmental performance through technological social responsibility. This study addresses this gap by investigating the relationship among the aspects of CSR disclosure, technical responsibility, green reputation, and environmental performance, as well as XAI as a moderator, in the context of Pakistan’s hospitality industry. The subject of AI and digital CSR practices is an interesting topic to study in Pakistan’s hospitality business, which is rapidly evolving digitally. The data were gathered from 397 hotel managers and examined using SMART PLS 4.0. The study found that CSR disclosures had a beneficial impact on technical responsibility, leading to a better green reputation and environmental performance. Mediation was supported by CSR indirect effects through technological responsibility and green reputation, and moderation indicated that XAI orientation enhances the effect of consumer protection and employee welfare disclosures on technological responsibility. This study provides theoretical insights and practical recommendations for hotels looking to integrate XAI and CSR into their sustainability practices.