World Economic Forum Founder Klaus Schwab Investigated For Workplace Misconduct, Fund Misuse - He Says It's All False

(MENAFN- Live Mint) An internal investigation commissioned by the World Economic Forum (WEF) has revealed a troubling pattern of workplace misconduct by its founder, Klaus Schwab, over the past decade. As first reported by The Wall Street Journal, the probe-initiated in April following a whistleblower complaint-alleges bullying, inappropriate behavior toward female employees, and unauthorized personal spending.

In one instance, Schwab reportedly sent a late-night email to a senior female executive in June 2020, asking:“Do you feel that I am thinking of you?” According to the news outlet, investigators cited the message as potentially inappropriate and indicative of a broader culture of favoritism and fear under Schwab's leadership.

Lavish travel, gifts flagged

Schwab and his wife, Hilde Schwab, are alleged to have submitted over $1.1 million in travel expenses, much of which investigators flagged as questionable. These included first-class flights for Hilde-who held no formal role at the Forum-and personal trips to Venice, Miami, Seychelles, and Morocco totaling around $63,000, with minimal evidence of business activity, WSJ reported.

Investigators also noted 14 hotel massages billed to the World Economic Forum through corporate cards or junior staff, though Schwab said he reimbursed about half and had instructed aides to bill him personally.

“Throughout this journey, Hilde and I never used the Forum for personal enrichment,” Schwab said in a statement via a spokesman. He maintained that any mistakes were unintentional and pledged to repay any misallocated funds after the probe's final report.

Culture of intimidation and discrimination

Interviews with over 50 current and former staff painted a picture of an organization ruled by fear. Schwab allegedly sidelined pregnant women and older female employees, affecting their careers and mental well-being. One source described Schwab's leadership style as operating the Forum like his“fiefdom”, using intimidation to maintain control.

Legacy under threat

Schwab, 87, stepped down, ending his 55-year tenure as WEF's chief . The Swiss law firm Homburger, leading the investigation, is expected to finalize its findings by August-end and submit them to Forum trustees and potentially Swiss prosecutors, WSJ reported.

Schwab defending his legacy said he saw himself as a father figure to many young employees.

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