Klaus Schwab , founder of the World Economic Forum , plans to resume leadership of the global organization after an internal investigation that, according to him, cleared him of wrongdoing.
However, documents obtained by The Wall Street Journal (WSJ) indicate that the Forum kept the results of the investigation secret, raising doubts about the institution's transparency and governance.
According to the American newspaper, Schwab, 88, sent letters to members of the Forum's board with a series of demands, threats of lawsuits, and a request to assume a consultant position that would give him decision-making power over the appointment of the organization's future leadership.
The demands were made after the Forum released a statement last year suggesting that the investigation had cleared Schwab of any wrongdoing, saying that no "material irregularities" had been found.
He was accused by an anonymous whistleblower of misusing institutional resources for personal purposes, mismanagement, and creating a hostile work environment. Schwab denied the accusations, but ended up resigning as chairman of the Forum's board in April of last year.
The WSJ states, however, that internal documents produced by the lawyers responsible for the investigation point to a different scenario, with cases of discrimination and harassment, misuse of corporate funds, and violations of data integrity.
Based on information from sources, the report also claims that Schwab requested that some of the most relevant findings not be made public, a decision that was met with disagreement from some members of the board.
In one of the excerpts reproduced by the report, the investigation identified "multiple cases of systemic harassment, psychological trauma, and discrimination orchestrated by Klaus Schwab (and, in some cases, by his wife, Hilde). This includes: pregnancy-related discrimination, age discrimination, public humiliation, and inappropriate comments and messages in the workplace."
The public statement said that, "in certain cases, some Forum employees expressed the opinion that they were not treated satisfactorily." The note stated that the board expressed deep regret over the situation, but did not offer specific details.
Regarding expenses, the investigation revealed that the Schwabs used the Forum to "subsidize their lavish lifestyle, including unreimbursed luxury private travel; misuse of corporate funds and private accounts; and use of company vehicles for vacations and personal errands."
In the statement released to the public, the Forum stated that "there is no evidence of material wrongdoing on the part of Klaus Schwab." The report classified the overlapping expenses as "minor irregularities" that "reflect a deep compromise, not an intention to commit misconduct."
The Forum's board, currently co-chaired by BlackRock CEO Larry Fink and Roche Vice President André Hoffmann, is scheduled to meet in mid-August and is expected to review the situation.
Established in 1971, the World Economic Forum has gained prominence as an annual event in Davos , Switzerland, where government leaders, representatives from the private sector, and international organizations meet to discuss global economic, social, and political issues.
Under Schwab's leadership, the event established itself as a benchmark for the articulation of multilateral agendas and public-private partnerships, influencing strategic decisions on several fronts.
