The World Economic Forum, the organisation behind the annual meeting of world leaders in Davos, Switzerland, is investigating allegations of inappropriate behavior by founder Klaus Schwab.
The World Economic Forum board began an investigation into Schwab in April after receiving anonymously belonging letters to current and former staff, claiming that he described comments that he inappropriately used the organization's funds and made the letter uncomfortable for women. People requested anonymity as details of the letter remained confidential.
Schwab, 87, chaired the board last month. He didn't immediately have a comment. He told the Wall Street Journal, which previously reported the whistleblower letter and investigation, that he denied all allegations and overreacted when the committee ordered an investigation.
“In response to the whistleblower's letter regarding former chairman Klaus Schwab, the council has unanimously decided to launch an independent internal investigation,” Jan Zop, the forum's media leader, said in a statement Wednesday. “After consultations with external lawyers, the board concluded that a thorough and objective investigation was the appropriate course of action. ”
German economist Schwab founded the World Economic Forum in 1971, promoting the idea that businesses can play an integral role in promoting social causes. It is best known for its January meeting. There, thousands of executives and policymakers descend on the Swiss Alps and make great promises about everything from diversity to climate change.
More commonly known as Davos, the conference has been a target of criticism in recent years, focusing on whether headline-grabbing pronunciation and ambitious targets will bring about meaningful change. Many of these pledges were reduced this year in the wake of President Trump's election, like their commitment to globalism, diversity and inclusion.
Still, Davos remains important to executives who use it primarily as business meetings to set the agenda for the year. Its strong board reflects its impact, with members including CEOs such as Lawrence D. Fink of BlackRock and Mark Benioff of Salesforce, as well as Cherylists Yoyoma and Christine Lagarde of the European Central Bank.
It is unclear what the World Economic Forum turmoil means for conferences, including Amazon, Bank of America and Chevron. The board said in April that it had appointed former Nestlé CEO Peter Brebeck Letomate as interim chair.
