The World Economic Forum (WEF) is looking into serious allegations against its founder, Klaus Schwab. This follows complaints from whistleblowers about unethical behavior and misuse of funds. Schwab stepped down from his position as chairman and board member just days after the board received an anonymous letter detailing the accusations.
The letter, reportedly from current and former WEF employees, claims there have been ongoing governance problems and abuses of power under Schwab’s leadership. Specific allegations include using WEF funds for personal luxuries, like massages, and arranging meetings in lavish locations to justify vacations.
The WEF board has stated that it fully supports an investigation into these claims, which were brought to light by the whistleblower letter. They emphasized that the allegations are serious but remain unproven for now. The board consulted with external legal experts before deciding to proceed with the investigation.
Schwab has denied the allegations and intends to take legal action against those involved in spreading what he calls falsehoods. He had already announced plans to resign from his role as non-executive chairman by January of next year, but the recent letter has pushed his departure forward.
In his statement, Schwab mentioned that as he approaches his 88th birthday, he has decided to leave the organization he founded. His resignation comes at a time when the WEF is facing scrutiny over its workplace culture, which has been criticized for not adequately addressing discrimination against women and people of color.
The situation has led to a wave of departures among other top executives at the WEF, highlighting the organization’s current struggles. As the investigation unfolds, the WEF has promised to wait for the findings before making further comments.