Davos creator gets investigated due alleged misconduct
(MENAFN)
The World Economic Forum (WEF) has initiated an internal investigation following whistleblower claims of misconduct involving its founder and former chairman, Klaus Schwab, the Wall Street Journal reported on Tuesday. This development came a day after Schwab resigned from his position as chairman of the WEF board of trustees, ending his more than 50-year tenure at the organization he founded in 1971. Schwab did not publicly explain his resignation.
The World Economic Forum (WEF) has initiated an internal investigation following whistleblower claims of misconduct involving its founder and former chairman, Klaus Schwab, the Wall Street Journal reported on Tuesday. This development came a day after Schwab resigned from his position as chairman of the WEF board of trustees, ending his more than 50-year tenure at the organization he founded in 1971. Schwab did not publicly explain his resignation.
According to the Wall Street Journal, the WEF board received an anonymous letter last week from current and former employees accusing Schwab and his wife, Hilde, of financial and ethical misconduct. The letter alleged that Schwab used WEF funds for personal expenses, including instructing junior staff to withdraw cash for private use, such as paying for massages during official trips. It also claimed that Hilde Schwab used WEF resources for luxury hotel stays during personal travel.
Additionally, the letter raised concerns about Schwab's leadership, accusing him of fostering an environment where sexual harassment and discriminatory behavior were not addressed. In response, the WEF board convened an emergency meeting on Easter Sunday and voted to open an investigation, prompting Schwab to step down earlier than planned.
The WEF confirmed in a statement that the board had unanimously decided to pursue an independent investigation, consulting external legal counsel. While the organization emphasized that the allegations are unproven, it stated that it would await the investigation's outcome before making further comments.
A spokesperson for Schwab and his wife denied the accusations, asserting that the couple always reimbursed the WEF for any personal expenses incurred during business trips. The spokesperson added that Schwab plans to take legal action against those behind the allegations and anyone spreading what they called “falsehoods.” Schwab had previously forfeited a 5 million Swiss franc ($6 million) pension from the WEF to demonstrate good faith.
These latest allegations follow similar claims made last year regarding a toxic workplace culture, sexual harassment, and racial discrimination at the WEF. In March, the organization reported to its sponsors that an internal review found no legal violations and did not substantiate any misconduct by Schwab.
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