Latest news with #KlausSchwab
Arab News
3 days ago
- Business
- Arab News
In the wake of the WEF's challenges, neutrality and good governance are paramount
Geneva, Switzerland, is a hub for international cooperation. The city has provided a venue for dialogue among governments and nongovernmental organizations alike since the early 20th century, bolstered by critical aspects of the Swiss DNA: neutrality, good governance and a tradition of dialogue for impact and peace. Since its founding in 1971, the World Economic Forum, under the leadership of its founder Klaus Schwab, started as a private foundation and eventually became an official Swiss international organization guided by the mission statement: 'Committed to improving the state of the world.' The WEF and its annual gathering in Davos evolved from a European industrial conclave into the world's most influential event for brand building, networking and addressing the topics of the day among political figures, business leaders, NGOs and the social sector. The WEF today, however, is facing an impasse. As a perceived neutral platform for dialogue, for decades the WEF offered a unique value proposition geopolitically, from the Cold War period through the Middle East peace process and the end of apartheid in South Africa. This neutrality came into question in 2022 following the war in Ukraine. At that point, the WEF followed political pressure from the US, the EU and Switzerland, turning away all stakeholders, political and civilian, from Russia, thereby taking sides in the conflict and stifling dialogue. When asked directly why the Russians were excluded, one WEF representative at the time cited the excuse that 'Russia invaded a sovereign country' as a justification for the WEF's unprecedented political stand. This situation has played itself out historically with the US-UK invasion of Iraq in 2003, when moral justifications regarding human rights violations were used on a selective basis to underscore what was later revealed to be the false pretense of weapons of mass destruction. Moreover, without skipping a beat, the following January, the WEF invited the US and UK governments, their allies and other stakeholders to Davos, despite their invasion of a 'sovereign country.' As a perceived neutral platform for dialogue, for decades the WEF offered a unique value proposition geopolitically. This fault line is one, which, compared to Western countries, counterparts from the Arab Gulf to the BRICS and the Global South have addressed in a more pragmatic way. Instead of focusing solely on the Western, pro-NATO enlargement narrative, they have considered, rightly, their own business and economic interests and interlinked global geopolitics over the principles of so-called sovereignty and invasion. In terms of its own internal governance, the WEF has come under scrutiny in the past few years following a series of journalistic reports, notably from The Wall Street Journal, which started with looking into gender and inclusion policies and which ultimately led to the resignation of the founder. In the last month in particular, several alleged governance questions have emerged about Schwab, his family, the board and select members of the management team. While independent investigations are underway under the eyes of the Swiss authorities, and innocence is presumed until proven otherwise, it is important that these events not neglect a critical aspect: these issues — if true — would not have occurred had proper measures been installed to ensure good governance, checks and balances, and the proper oversight of what is today an official Swiss international organization. According to the bylaws of the WEF, Schwab has the right to appoint his own successor and either he or a member of his immediate family sits on the board of trustees. Schwab will therefore likely continue to pursue his own case and deny the allegations of wrongdoing that have been lodged to protect his own personal reputation and, even more so, his legacy. The authorities and the current board of the WEF may need to find a compromise, including naming him honorary chairman and/or meeting other demands. Serious questions must be addressed about how so many alleged internal issues were allowed to precipitate over an extended period without board members supposedly being aware. Beyond the organizational culture that was variably criticized in the media, it appears as though board members failed to ask the right questions or address issues, as did the regulators, in compliance with Swiss law, which mandates regular audit. The current circumstances should therefore give the WEF pause to pose some of the difficult values-based questions for an organization that is charged with convening the world's elite around the most pressing global challenges. Moreover, the WEF's partners, notably business and wealthy governments, finance its $500 million annual budget. If the WEF is going to continue to accept these financial contributions, it must also be held accountable. Against this backdrop, and at a moment when global leadership is under great scrutiny and redefinition, multistakeholder leaders have options to choose between myriad different events and initiatives for building their influence and collaboration, ranging from the Milken Institute to the Future Investment Initiative. Now is the time, however, for the WEF to revisit its purpose and decide if it will become one of the many hubs for corporate networking and deal-making or if it will stay true to its DNA: serving as a neutral platform, with good governance and focused on real impact. • Khalid Abdulla-Janahi, chairman of Vision3, has over 30 years of experience in banking and financial services.
RTÉ News
4 days ago
- Business
- RTÉ News
WEF founder Klaus Schwab files criminal complaint against whistleblowers, FT reports
World Economic Forum (WEF) founder Klaus Schwab has filed a criminal complaint against the whistleblowers who had anonymously alleged misconduct by him, the Financial Times reported today, citing an interview with Schwab. The forum had launched an investigation in April into Schwab following a whistleblower letter alleging misconduct by him, only a day after the 87-year-old Schwab said he was resigning as chairman without stating a reason. Schwab told the FT that he would fight the "stupid and constructed" allegations, adding that his lawyers had filed a complaint for defamation and coercion with the public prosecutor in Geneva. WEF, whose annual gathering of business and political leaders in the Swiss mountain resort of Davos has become a symbol of globalisation, did not immediately respond to a Reuters request for comment. Schwab could not be immediately reached. There was no immediate response from the Geneva prosecutor's office. The FT report said the WEF had declined to comment on Schwab's legal action, saying it was "a matter apparently directed privately against unknown whistleblowers". "We will have this public prosecutor investigation now, we don't know how aggressive they will be," Schwab said. "If they find a systemic attempt to undermine my reputation, this won't be comfortable for the board," he said. The Wall Street Journal, which first reported the probe in April, had said the anonymous letter raised concerns about WEF's governance and workplace culture, including allegations that the Schwab family mixed their personal affairs with the forum's resources without proper oversight. The Schwab family denied all the allegations in the whistleblower complaint to the Journal. Schwab also denied all allegations against him to the Financial Times.
The Hindu
4 days ago
- Business
- The Hindu
WEF founder Klaus Schwab files criminal complaint against whistleblowers, FT reports
World Economic Forum (WEF) founder Klaus Schwab has filed a criminal complaint against the whistleblowers who had anonymously alleged misconduct by him, the Financial Times reported on Thursday (May 29, 2025), citing an interview with Mr. Schwab. The Forum had launched an investigation in April into Mr. Schwab following a whistleblower letter alleging misconduct by him, only a day after the 87-year-old Mr. Schwab said he was resigning as chairman without stating a reason. Mr. Schwab told the FT that he would fight the "stupid and constructed" allegations, adding that his lawyers had filed a complaint for defamation and coercion with the public prosecutor in Geneva. WEF, whose annual gathering of business and political leaders in the Swiss mountain resort of Davos has become a symbol of globalisation, did not immediately respond to a Reuters request for comment. Mr. Schwab could not be immediately reached. There was no immediate response from the Geneva prosecutor's office. The FT report said the WEF had declined to comment on Mr. Schwab's legal action, saying it was 'a matter apparently directed privately against unknown whistleblowers'. "We will have this public prosecutor investigation now, we don't know how aggressive they will be," Mr. Schwab said. "If they find a systemic attempt to undermine my reputation, this won't be comfortable for the board." The Wall Street Journal, which first reported the probe in April, had said the anonymous letter raised concerns about WEF's governance and workplace culture, including allegations that the Schwab family mixed their personal affairs with the Forum's resources without proper oversight. The Schwab family denied all the allegations in the whistleblower complaint to the Journal. Mr. Schwab also denied all allegations against him to the Financial Times. The Forum has previously stated that it would wait for the outcome of the investigation to comment further.
Irish Times
5 days ago
- Business
- Irish Times
Christine Lagarde said to have discussed leaving ECB early to head WEF
Christine Lagarde has discussed cutting short her term as European Central Bank (ECB) president to become chair of the World Economic Forum (WEF) , according to WEF founder Klaus Schwab . Schwab, who left the WEF last month following misconduct allegations that he denies, said that practical arrangements – such as an apartment in Switzerland – had been made for Lagarde to take over the organisation before her tenure at the ECB ends in 2027. Any move by Lagarde to accelerate her departure from the ECB could trigger a succession race for the EU's top monetary authority. Schwab said Lagarde had been at the centre of a plan both had discussed for 'several years' for her to replace him as head of the WEF, the body behind the annual meetings of the business and political elite at the Swiss ski resort of Davos. READ MORE The latest conversation was in early April, when Schwab visited Lagarde in Frankfurt 'to discuss with her the leadership transition [at WEF] with myself remaining chair until she was ready to take over, at the latest, early 2027', he said in an interview. Lagarde, who has been on the WEF board of trustees since 2008, has a non-renewable eight-year term at the ECB which runs until the end of October 2027. Two people familiar with the matter referred to a mutual understanding about the timeline between both sides, which would have required Lagarde to leave at least 10 months before her term ends. One of them said she had agreed to take on the role on the proviso she could first bring inflation in line with the ECB's medium-term 2 per cent target. But they added that Lagarde also expressed some reservations about her ability to leave the ECB early at various points during the conversations about her future. An ECB spokesperson said: 'President Lagarde has always been fully committed to deliver on her mission and is determined to complete her term.' The spokesperson declined to comment further. The WEF said it was 'not in any position to comment on possible confidential discussions that may have taken place between our former chairman and Madame Lagarde'. The 69-year-old former IMF managing director and French finance minister would be the second ECB president after Wim Duisenberg to leave the Frankfurt-based institution early. The ECB presidency, one of the highest-profile financial jobs in Europe, has historically been subject to high-stakes political bargaining between individual member states. Schwab told the FT that an apartment in the WEF-owned Villa Mundi overlooking Lake Geneva had already been reserved for Lagarde, to give her 'somewhere to work as she took on more responsibilities and needed to be here'. Responding to claims by a whistleblower that his family had made private use of parts of the Villa Mundi complex, he added that the apartment was not for him but Lagarde. The WEF described his comments on the apartment as 'new information to us', adding that Villa Mundi was 'now being used by our staff and constituents'. Several people familiar with the WEF succession cautioned that no formal agreement between the Geneva-based institution and Lagarde had yet been struck. But two people with knowledge of discussions said the conversations between Lagarde and the forum about a leadership role had continued since Schwab's departure. The 87-year-old said in early April he intended to step down as chair of the board of WEF trustees in January 2027. But he was forced out by the WEF board only weeks later, after the anonymous whistleblower made a series of allegations including that he and his family received inappropriate financial benefits from the organisation. Schwab had been cleared of other misconduct allegations just weeks before the new complaint landed and has also rejected the latest allegations. The WEF founder told the FT that he was concerned that the long-planned handover to Lagarde might be jeopardised, because of his own early departure last month and potential damage to the institution's reputation. 'My fear is that if this continues and hangs over the organisation without a solution, Christine Lagarde will not take up the position as chair,' he said. 'I don't want to lose her. I want to make sure what has been built here ... is not destroyed.' The WEF, which has appointed former Nestlé chief Peter Brabeck-Letmathe as an interim chair, countered that it 'continues to operate from a position of strength', adding that it had record participation in recent events. Davos has become a set-piece event for chief executives and heads of government and a moneymaking machine, with 440 million Swiss francs in revenue in 2024. Lagarde could expect a doubling of her annual salary, which last year stood at €466,000, compared with about 1 million Swiss francs that Schwab made. Since taking office at the ECB in 2019, she has steered the central bank through Covid-19 and a once-in-a-generation surge in inflation that followed pandemic lockdowns and Russia's full-scale invasion of Ukraine. Price rises have since come back under control, with Eurozone inflation remaining at 2.2 per cent last month and ECB staff forecasting it will return to target next year. – Copyright The Financial Times Limited 2025
Bloomberg
5 days ago
- Business
- Bloomberg
Lagarde Discussed Leaving ECB Early for WEF, Schwab Tells FT
European Central Bank President Christine Lagarde has discussed cutting short her term to chair the World Economic Forum, the organization's departed founder Klaus Schwab told the Financial Times in an interview. Practical arrangements for Lagarde's arrival including the reservation of an apartment in the WEF-owned Villa Mundi close to the headquarters of the institution were made, Schwab told the newspaper. Schwab and Lagarde had discussed a plan for her to take over from him as the WEF head for 'several years,' he added.
