World Economic Forum probes founder Klaus Schwab after alleged misconduct

The World Economic Forum (WEF) said that it has opened an investigation into its founder, Klaus Schwab, after a whistleblower’s serious allegations against him. The allegations emerged just a day ago when Schwab, 87, revealed he would step down as chairperson with immediate effect without providing any reason.

The Wall Street Journal first broke the news of the investigation, which revealed that an anonymous letter was received by the WEF board last week. The letter complained about the governance and workplace culture of the organisation. It claimed that Schwab and his family combined their personal affairs with WEF resources without any supervision.

A spokesperson for the WEF said, “The World Economic Forum takes these allegations seriously, but we want to emphasise that they remain unproven at this stage. We will await the outcome of the investigation before making any further comments.”

According to the Wall Street Journal, the Schwab family has denied the allegations made in the whistleblower letter. The representative of the family also disclosed that Klaus Schwab intends to sue the author of the anonymous letter and all those who disseminate these false accusations.

WHY WEF IS BEING CRITICISED

The WEF, particularly its headline-grabbing annual gathering in Davos, has long been accused of being an elitist event that turns a blind eye to the problems of ordinary individuals. There have been increasingly mounting reports on the internal culture at the forum too, with some labelling it a culture of harassment and discrimination.

In reaction to these accusations, the WEF’s board previously retained a law firm to probe the organisation’s work environment. Nevertheless, the WEF has denied these claims consistently.

(With inputs from Reuters)

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