Unraveling Corruption: Current Cases, Global Implications, and Potential Solutions

Research Article
Open access

Unraveling Corruption: Current Cases, Global Implications, and Potential Solutions

Meiqi Yuan 1*
  • 1 Keystone Academy    
  • *corresponding author meiqi.yuan@student.keystoneacademy.cn
CHR Vol.44
ISSN (Print): 2753-7072
ISSN (Online): 2753-7064
ISBN (Print): 978-1-83558-635-8
ISBN (Online): 978-1-83558-636-5

Abstract

Corruption is a widespread issue that impacts individuals, businesses, and societies on various levels. This research paper seeks to delve into the nature of corruption and how it influences economic progress, political stability, and societal welfare. Through the methodology of case study and literature review of academic resources from journals, books, and online reports, this paper utilizes a search strategy including keywords like "corruption " "implications " "economic impact," "societal effects " and "South Africa." Additionally, it investigates the effects of corruption on development, social trust, inequality, and institutional integrity. By analyzing existing research materials this paper aims to enhance our understanding of the multifaceted aspects of corruption and its broad implications, in hopes of identifying potential solutions. As a result, it is concluded that corruption in the status quo perpetuates due to both historical trends and modern socio-economic conditions, resulting in intertwined negative impacts that affect individuals and societies simultaneously. It is also found that multifaceted solutions that combine groundwork policies with innovative strategies including ecommerce support for impoverished citizens, in order to become self-sufficient and more resilient to diminishing welfare resources caused by corruption.

Keywords:

political corruption, socioeconomic implications, inequality, South Africa

Yuan,M. (2024). Unraveling Corruption: Current Cases, Global Implications, and Potential Solutions. Communications in Humanities Research,44,244-250.
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1. Introduction

Corruption is said to have significant implications in social, economic, and political aspects of society [1]. Its negative consequences are not only limited to undermining trust in government and distorting the allocation of resources, but also include the jeopardy of economic growth in the long term and the perpetuation of inequalities within societies [1, 2]. Moreover, corruption is a complex and multifaceted phenomenon that affects countries worldwide, regardless of their current level of development. Understanding its presence and implications is crucial for addressing the root causes and formulating effective strategies to combat it. By examining case studies and analyzing the latest scholarly research, a comprehensive understanding is necessary in examining the long-lasting consequences of corruption and the urgent need for concerted efforts to mitigate its effects.

2. Exploring the Landscape of Corruption: a South African Case

To gain insight into the extent and conditions under which corruption takes place studying real life instances can be an approach to uncover the intricacies surrounding the existence of corruption. South Africa stands out as an example with its extensive history of corrupt practices, thus offering an interesting case study to delve into the mechanisms and impacts of corruption within a specific context. Corruption in South Africa is diverse involving manifestations like bribery, fraud and favoritism [3]. For instance, in 2022 allegations of corruption surfaced against Matshela Koko, the head of electricity in South Africa, who was linked to purportedly accepting kickbacks in connection with contracts granted by the national power utility [4]. The widespread presence of corruption, in South Africa underscores the ingrained structural challenges that fuel its persistence.

Specifically, Koko was charged with being a key figure in a morally hazardous plan where he supposedly assisted the Swiss engineering company Asea Brown Boveri (ABB) in obtaining a contract valued at R2.2 billion for the Kusile power station operated by Eskom [5]. This situation exemplifies how corruption has seeped into ranking roles in public institutions impeding progress and disrupting the fair distribution of resources. Nevertheless, such case is only one example of the corruption issues in South Africa. During a late-night speech to the nation, South African President Jacob Zuma announced his resignation marking the end of a turbulent period marked by serious corruption allegations [6]. Zuma’s presidency faced challenges, including accusations of fraud and legal battles which led to public scrutiny and growing discontent within the country. The pivotal moment in Zuma’s presidency came when charges related to corruption, fraud, money laundering and racketeering linked to an arms deal were brought back against him. Along with a ruling from the country’s highest court that found Zuma had not repaid public funds used for his private residence this significantly impacted his public approval and credibility. Additionally, investigators claimed that Zuma had received 783 payments from a convicted financial advisor involved in fraudulent activities. These disclosures added to a history of corruption suspicions surrounding Zuma dating back to the early 2000s revealing a consistent pattern of unethical conduct and abuse of authority.

South Africa’s ongoing battle against corruption was further emphasized by its rating of 43 out of 100 in Transparency Internationals Corruption Perceptions Index indicating the persistent challenges the country faces in fighting corruption. This situation demonstrates how corruption at levels, such as bribery and fraud, continue to exist within the government, which hinders the efforts of citizens and authorities to combat unethical practices. The resignation of Zuma serves as a reminder of the disruptive impact of corruption among top leaders and the continuous struggle against fraudulent activities across various nations. Moreover, South Africa lacks implementation and enforcement of anti-corruption measures allowing corrupt practices to thrive in various areas. The consequences of corruption extend beyond institutions and high-ranking officials [7].

To begin with, a lack of political will to address corruption has been a major contributing factor. Political leaders, responsible for leading and governing have often displayed hesitance or outright refusal to tackle corruption in South Africa [8]. Undoubtedly, South Africa’s situation provides an example that highlights how corruption corrodes society. This emphasizes the urgent need to strengthen efforts against corrupt practices and establish governance based on transparency, ethical behavior, and institutional integrity. It is seen that the situations described in South Africa are especially challenging as they not only impede advancement and growth but also exacerbate social and economic disparities.

Another cause of corruption is most likely due to the fact that South Africa's history of colonialism, apartheid, and subsequent socio-political transitions has laid the groundwork for systemic inequality and fostered an environment conducive to corrupt activities [7, 8]. Generations of segregation and bias have influenced the distribution of power economic gaps and institutional vulnerabilities leading to the promotion of behaviours in various sectors. Both public and private. The examination of South Africa provides an example of how corruption can profoundly harm societal welfare, economic progress, and social equity. Consequently, the prevalence of corruption in the situation is causing significant harm, to South Africa as a whole and impacting its populace. However, corruptions broader effects are felt on a scale affecting nations at all stages of development.

3. Global Impacts of Corruption on Socioeconomic Disparities

3.1. Damage to the Economy

There are multiple wider implications of corruption on the socioeconomic disparities within a country no matter its current economic circumstance. Quantifying the exact economic costs of corruption is challenging, but according to a 2016 International Monetary Fund (IMF) report, the cost of bribery alone is estimated to range from $1.5 to $2 trillion annually, amounting to approximately 2% of global GDP [9]. This estimation, however, does not encompass the economic impact of various other forms of corruption. For instance, the exposure of offshore entities through leaked documents such as the Panama Papers illustrated the extensive economic implications for multiple countries and overall economic inequality, highlighting the far-reaching effects of fraud, money-laundering, and tax evasion [10]. It is seen that corruptive acts result in significant economic losses on the quantifiable level, at the very least.

Direct economic harm is merely the effect on the surface, however, as corruption not only causes quantifiable economic damage, but also hampers economic effectiveness by showing favouritism towards individuals or companies involved in bribery or with personal connections. This bias restricts competition hinders the selection of qualified candidates or firms and ultimately leads to an economy that operates less efficiently. In developing nations, corruption can impede progress by disrupting economic and humanitarian efforts, resulting in the misappropriation of funds from loans and aid programs and the unfair awarding of contracts to less competent contractors through illicit means. Specifically, this means that corruption diminishes investments in both infrastructure and human capital by redirecting resources away from their most productive uses [11]. As a result, corruption worsens disparities by disproportionately impacting marginalized and vulnerable communities who already face limited access to resources and opportunities leaving them more vulnerable, to its detrimental effects.

3.2. Consequences to Society and Citizens

From a social perspective, corruption has a profound impact on both developed and developing nations, affecting various aspects of society in detrimental ways. The diversion of funds from essential developmental programs often leads to devastating consequences. For instance, in Nigeria, embezzlement and corrupt practices have siphoned off critical resources meant for healthcare, resulting in inadequate medical facilities and insufficient healthcare services, leaving a significant portion of the population without access to proper medical care [12]. In similar instances in other countries, funds designated for education are misused, contributing to underfunded schools, lack of essential learning materials, and, in some cases, inadequate teacher training, hindering the academic advancement of countless students.

Furthermore, corruption deters investors hinders development aid and worsens inequality. In nations like Kenya where corruption's widespread foreign investors encounter various obstacles, such as being asked for bribes and facing legal frameworks weakened by corrupt influences. This results in inequality being exacerbated, especially affecting the most vulnerable groups in society. For instance, when resources are misused due to activities, essential services and opportunities would be unevenly distributed. This hinders the mobility of marginalized individuals. Additionally disadvantaged communities suffer the most from the consequences of corruption facing limited access to basic services and opportunities that deepen the cycle of poverty and marginalization. Using Zimbabwe as a case study, corrupt behaviours have hindered the provision of services, leaving many citizens marginalized—particularly those in rural or disadvantaged regions—thus perpetuating their social marginalization [13]. Overall, corruption fundamentally weakens the effectiveness of safety nets in protection of marginalized individuals and communities. When funds allocated for social welfare initiatives are embezzled due, to corruption vulnerable members of society are deprived of support. This undermines safety nets designed to reduce poverty and cater to the needs of disadvantaged individuals [14]. Therefore, it is imperative for governments and stakeholders to prioritize the fight against corruption to address income inequality and poverty.

Finally, when corruption intersects with violations of human rights, such as forced displacement, exploitation in the workforce, and denial of essential rights, the impact is profound and extensive. Forced displacement, often triggered by land transactions or abuse of authority, can disrupt entire communities resulting in the loss of homes, livelihoods, and social bonds. Vulnerable groups like indigenous communities and marginalized populations face significant risks of displacement without adequate support or avenues for redress. For instance, exploitation of labour that results from unjust leadership further promote unethical behaviours like bribery and favouritism, leading to working conditions, meagre wages, and hazardous workplaces. This exploitation violates the fundamental dignity and rights of workers but also sustains a cycle of poverty and inequality that causes immense human suffering.

Corruption can directly lead to the violation of rights denying individuals access to vital services, fair treatment in legal matters and meaningful participation in political processes. When people are stripped of their rights due to corrupt practices, within institutions meant to safeguard them it erodes the core principles of a fair and just society while perpetuating widespread social injustices.

Addressing these issues requires acknowledging that combating corruption is closely intertwined with upholding rights. To effectively fight corruption, it is essential to prioritize safeguarding the rights of every individual preventing any vulnerability, to exploitation, displacement or systemic injustice resulting from activities.

4. The Effectiveness of Solutions to Easing the Consequences of Corruption

4.1. Anti-corruption Progress

In the status quo, it is uncertain to say whether there is a definite solution for corruption within countries, as corruption itself stems from a collective nature that is usually deeply rooted in a governmental system [15]. When addressing the problem of corruption, it is beneficial to acknowledge its significant impact on various aspects of society. Recognizing corruption as a hindrance to progress has led to initiatives aimed at lessening its effects. Governments and civil society organizations focused on reform have played roles in minimizing corrupt practices or laying the groundwork for future improvements [16].

Another obstacle would be the difficulty in establishing international cooperation and collective frameworks on anti-corruption progress. Inadequate international governance structures may lead to a lack of enforcement mechanisms for global agreements. Moreover, the existence of rivalries, disputes, and conflicting national interests between different countries could further hinder the progress for countries to be on the same page when discussing different issues – distinct differences in wealth, developmental status, and resources among nations may lead to unequal contribution and participation in global cooperation efforts, impacting the effectiveness of collaborative initiatives. Lastly, the presence of diverse cultural perspectives and societal norms among nations can lead to challenges in fostering mutual understanding and consensus on key global issues, as well as inequalities based on gender, race, class, and ethnicity can contribute to divisions that drastically impede cohesive global cooperation efforts on recognizing and tackling corruption as a common threat to society.

Despite the afore-mentioned challenges, there have been improvements in mitigating corruption risks in difficult circumstances. However, it is evident that addressing corruption requires more than technical fixes and compliance measures. Developing policies and institutional frameworks necessitates a deep understanding of historical roots, social conventions, and political environment [17]. It is recognized that there is no one-size-fits-all solution to combat corruption highlighting the nature of the problem. The success of initiatives like open government reforms hinges on factors such as determination, a free press, a vibrant civil society, and robust accountability mechanisms [18]. Additionally, collaborating with stakeholders both within and outside the government is crucial for enhancing governance effectiveness. The significance of governance as a key tool, in addressing economic, political, social, and environmental dilemmas is widely acknowledged [19, 20].

4.2. Key Factors to be Considered when Designing and Implementing Solutions

With the above-mentioned circumstances, the multifaceted nature of corruption calls for diverse solutions through both direct and indirect measures to suppress possibilities of future cases while reducing the current impacts of corruption. Traditional methods have underscored the importance of technical solutions and compliance measures. To effectively tackle corruption, it is crucial to understand the historical context and the political and cultural environment in a country when developing impactful policies and institutional frameworks. This requires a shift from focusing on technical solutions to recognizing and addressing the social and political dynamics at play. It also involves establishing legal structures and ethical standards for both public and private sectors. Specifically, The World Bank emphasizes the importance of government reforms, which rely on factors like political determination, an independent media, a strong civil society and effective accountability mechanisms. These components can be pivotal in enhancing overall government effectiveness and transparency [16-20].

However, to successfully reduce corruption in the long run, the development of impactful policies and institutional structures requires a comprehensive understanding of historical origins, social norms, and political culture. Moreover, it demands a shift from mere technical solutions to a deeper understanding of the social and political factors at play, as well as the development of supportive legal frameworks and ethical standards for both public and private sectors. To illustrate, the World Bank highlights the role of open government reforms, which depend on factors such as political will, an independent media, a robust civil society, and effective accountability mechanisms. These components can be pivotal in enhancing overall government effectiveness and transparency [16].

4.3. Innovative and Modern Strategies to Assist Anti-corruption

Utilizing data analytics and online platforms might assist the reduction of the consequences of corrupt activities. Embracing technologies such as blockchain can offer innovative solutions to combat corruption by increasing transparency, in financial transactions and supply chains. Blockchain has been proposed as a tool for enhancing transparency and trust in financial transactions and supply chains, potentially mitigating corrupt practices. Similarly, the use of data analytics and artificial intelligence can help identify irregularities and patterns that signify potential corrupt activities, enabling proactive interventions to curb such malpractices [16-20].

Another strategy to minimize the effects of corruption on vulnerable populations is to offer opportunities and support programs to promote self-sufficiency in rural areas through e-commerce, a method that could sustain villagers in the long term, even with the jeopardy of infrastructure and welfare programs caused by corruption. As an example, despite decreased resource supply under corruption’s influence, rural regions in China have started to receive exclusive attention after the National Development and Reform Commission (NDRC) published an e-commerce plan, in which platforms would be set up for the sale and purchase of products from poverty- stricken areas, particularly aiming to stimulate the local economy and alleviate poverty in Yunnan Province, Tibet Autonomous Region, and Southern Xinjiang Autonomous Region. Support from the NDRC had achieved remarkable results, including a 14-hour livestream successfully attracting more than 75 million viewers in advertising up to 88 different local products, together with the shopping platform Pinduoduo [21]. The combined usage of e-commerce applications and livestreaming features have evidently enhanced the income levels of local citizens in the autonomous region, particularly attracting 75 million people via the livestreams for 88 different types of local products [21].

In addition, there are existing modern methods of containing corruptive behaviours through the promotion of education and awareness programs themselves, aimed at citizens businesses and government officials. These campaigns are pivotal in helping educate people about standards and legal implications while also promoting a culture of accountability and integrity in society. International collaboration and support are essential for addressing corruption in dealing with cross border cases. By setting up cooperation frameworks and encouraging information exchange between nations, anti-corruption efforts can be more impactful, on a worldwide level. For example, the 10,000 Villages Live Streamer Training Plan launched by the popular Chinese streaming platform Kuaishou was effective at teaching villagers, in impoverished regions, methods and skills relating to creating videos and livestreams that display their hidden talents, watching them receive monetary gifts and virtual rewards via Kuaishou’s e-commerce portal – the immense returns were life-changing to residents in China as a whole, by assisting 5 million people out of 19 million streamers to successfully generate income on the platform, who were villagers from poverty-stricken areas [22].

Moreover, collaborative efforts from modern social media platforms and traditional organizations such as the Ministry of Human Resources and Social Security (MHRSS) have recognized the importance of digital platforms in impoverished migrant workers’ process of seeking employment. It is evident that rural citizens being able to earn economic profits without depending on the support of the government give them the ability to avoid the impacts of corruption and damaged social safety nets. These innovative methods provide new insights into mitigating the lingering effects of corruption on impoverished and marginalized areas of society. As a win-win solution for both sellers and buyers in the market, low-income residents in impoverished counties and poverty-stricken villages have put in huge efforts to seize the financial opportunity generated by livestream e-commerce. With modern assistance projects and programs, vulnerable populations would be able to gain both skills and rewards that efficiently utilize the strengths of their local conditions, providing them the ability to withstand corruptive policies and corrupted social programs that do not provide the essential support for their livelihoods.

5. Conclusion

In conclusion, the harmful effects of corruption on society economies and vulnerable communities are significant. Corruption not only hamper progress and development, but also deepens social and economic disparities, leaving disadvantaged groups without vital resources and opportunities. To tackle this issue, it is vital for governments and stakeholders to prioritize combating corruption. Enforcing corruption measures with unwavering determination is crucial to curb the far-reaching negative consequences of corrupt activities and promote honesty, accountability, and ethical governance.

Through these efforts, governments can not only restore trust in public institutions but also create an environment conducive to equitable and sustainable development. The concerns learned from South Africa's experience serve as a compelling case study, highlighting the corrosive effects of corruption and underscoring the need to fortify efforts to combat corrupt practices and instill governance rooted in transparency, ethical conduct, and institutional integrity.


References

[1]. Jain, A K. (2001) Corruption: A Review.

[2]. Heide, M., Wazzan, H. A., (2022) Fighting corruption is key to addressing the world’s most pressing problems. World Economic Forum.

[3]. Lodge, T. (1998) Political Corruption in South Africa. African Affairs, 97, 157–187.

[4]. Givetash, L. (2022) South Africa’s Former Electricity Boss Charged with Corruption. Voice of America.

[5]. Matshela Koko. (2022) Government of South Africa. SIU welcomes the arrest of former Eskom Executive.

[6]. Swilling, M., Bhorat, H., Buthelezi, M., Chipkin, I., Duma, S., Mondi, L., & Friedenstein, H. (2017). Betrayal of the promise: How South Africa is being stolen. State Capacity Research Project, 1-63.

[7]. Hanyane, B., & Naidoo, G. (2015) Municipal Employees’ Perceptions of Service Delivery in Limpopo-South Africa: A Critical Need for Good Governance, 10, 241-249.

[8]. Kalombo, G. A. S. T. O. N. (2005) Understanding political corruption in post-apartheid South Africa: the Gauteng experience. University of the Witwatersrand, South Africa.

[9]. Fleming, S. (2019) How bad is the global corruption problem? World Economic Forum.

[10]. Panama. (2024) Tax Evasion, Money Laundering & Offshore Accounts, Britannica Money.

[11]. Everhart, S. S., Martinez-Vazquez, J., Martinez-Varquez, J., & McNab, R. M. (2003) Corruption, Investment, and Growth in Developing Countries. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association, 96, 84–90.

[12]. M. E. Akokuwebe, & E. S. Idemudia. (2023) Fraud within the Nigerian health system, a double threat for resilience of a health system and the response to the COVID-19 pandemic: a review, The Pan African Medical Journal, 45

[13]. Nyoni, T. (2017). The curse of corruption in Zimbabwe. International Journal of Advanced Research and Publications, 1(5).

[14]. Brun, J., Gómez, A M., Julien, R., Ndubai, J., Owens, J., Rao, S., & Soto, Y. (2022) Taxing Crime: A Whole-of-Government Approach to Fighting Corruption, Money Laundering, and Tax Crimes

[15]. Uslaner, E. M., & Rothstein, B. (2016) The Historical Roots of Corruption: State Building, Economic Inequality, and Mass Education. Comparative Politics, 48, 227–248.

[16]. The World Bank. (2024) How to make progress in the fight against corruption.

[17]. UNODC. (2020) Anti-Corruption Module 1 Key Issues: Effects of Corruption. Unodc.org

[18]. CMI - Chr. Michelsen Institute. (2023) Why is anti-corruption so difficult?

[19]. HKS Faculty (2004). Inequality and Corruption. Harvard.edu, 4, 1.

[20]. United Nations Development Programme. (2019) Ensuring sustainable solutions to combatting corruption.

[21]. CGTN. (2020) E-commerce helps eradicate poverty in impoverished areas.

[22]. Su, J., Wang, D., Zhang, F., Xu, B., & Ouyang, Z. (2023) A Multi-Criteria Group Decision-Making Method for Risk Assessment of Live-Streaming E-Commerce Platform. Journal of Theoretical and Applied Electronic Commerce Research, 18, 1126–1141.


Cite this article

Yuan,M. (2024). Unraveling Corruption: Current Cases, Global Implications, and Potential Solutions. Communications in Humanities Research,44,244-250.

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Volume title: Proceedings of the 3rd International Conference on Art, Design and Social Sciences

ISBN:978-1-83558-635-8(Print) / 978-1-83558-636-5(Online)
Editor:Enrique Mallen
Conference website: https://2024.icadss.org/
Conference date: 18 October 2024
Series: Communications in Humanities Research
Volume number: Vol.44
ISSN:2753-7064(Print) / 2753-7072(Online)

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References

[1]. Jain, A K. (2001) Corruption: A Review.

[2]. Heide, M., Wazzan, H. A., (2022) Fighting corruption is key to addressing the world’s most pressing problems. World Economic Forum.

[3]. Lodge, T. (1998) Political Corruption in South Africa. African Affairs, 97, 157–187.

[4]. Givetash, L. (2022) South Africa’s Former Electricity Boss Charged with Corruption. Voice of America.

[5]. Matshela Koko. (2022) Government of South Africa. SIU welcomes the arrest of former Eskom Executive.

[6]. Swilling, M., Bhorat, H., Buthelezi, M., Chipkin, I., Duma, S., Mondi, L., & Friedenstein, H. (2017). Betrayal of the promise: How South Africa is being stolen. State Capacity Research Project, 1-63.

[7]. Hanyane, B., & Naidoo, G. (2015) Municipal Employees’ Perceptions of Service Delivery in Limpopo-South Africa: A Critical Need for Good Governance, 10, 241-249.

[8]. Kalombo, G. A. S. T. O. N. (2005) Understanding political corruption in post-apartheid South Africa: the Gauteng experience. University of the Witwatersrand, South Africa.

[9]. Fleming, S. (2019) How bad is the global corruption problem? World Economic Forum.

[10]. Panama. (2024) Tax Evasion, Money Laundering & Offshore Accounts, Britannica Money.

[11]. Everhart, S. S., Martinez-Vazquez, J., Martinez-Varquez, J., & McNab, R. M. (2003) Corruption, Investment, and Growth in Developing Countries. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association, 96, 84–90.

[12]. M. E. Akokuwebe, & E. S. Idemudia. (2023) Fraud within the Nigerian health system, a double threat for resilience of a health system and the response to the COVID-19 pandemic: a review, The Pan African Medical Journal, 45

[13]. Nyoni, T. (2017). The curse of corruption in Zimbabwe. International Journal of Advanced Research and Publications, 1(5).

[14]. Brun, J., Gómez, A M., Julien, R., Ndubai, J., Owens, J., Rao, S., & Soto, Y. (2022) Taxing Crime: A Whole-of-Government Approach to Fighting Corruption, Money Laundering, and Tax Crimes

[15]. Uslaner, E. M., & Rothstein, B. (2016) The Historical Roots of Corruption: State Building, Economic Inequality, and Mass Education. Comparative Politics, 48, 227–248.

[16]. The World Bank. (2024) How to make progress in the fight against corruption.

[17]. UNODC. (2020) Anti-Corruption Module 1 Key Issues: Effects of Corruption. Unodc.org

[18]. CMI - Chr. Michelsen Institute. (2023) Why is anti-corruption so difficult?

[19]. HKS Faculty (2004). Inequality and Corruption. Harvard.edu, 4, 1.

[20]. United Nations Development Programme. (2019) Ensuring sustainable solutions to combatting corruption.

[21]. CGTN. (2020) E-commerce helps eradicate poverty in impoverished areas.

[22]. Su, J., Wang, D., Zhang, F., Xu, B., & Ouyang, Z. (2023) A Multi-Criteria Group Decision-Making Method for Risk Assessment of Live-Streaming E-Commerce Platform. Journal of Theoretical and Applied Electronic Commerce Research, 18, 1126–1141.