Employees allege toxic workplace at World Economic Forum

Employees allege sexual, racial harassment at World Economic Forum

What you probably already know: The World Economic Forum, the group behind the famous Davos world leader convention, is under fire after an investigation by the Wall Street Journal alleged rampant sexual harassment and discrimination at the organization. Klaus Schwab, the founder of the group, is in the hotseat for allegedly trying to fire all employees over 50 years old and pushing out women who were pregnant. Female employees were allegedly sexually harassed by Davos VIPs and Black employees subjected to racial slurs.

Why? The WEF refused to speak to the Journal for the story, only issuing a statement that the article was a mischaracterization of the culture and its founder. Schwab has already announced plans to step aside, something that was in the works before the article came out, though he is set to remain on as executive chairman. The article includes allegations that there was a whisper network among female employees that encouraged them to avoid finding themselves alone in a room with Schwab.

What it means: While all issues of racial and sexual harassment are concerning, this is particularly galling because of the reputation the Forum has for championing gender equity. The Journal reported that the very people who put together the organization’s annual Global Gender Gap Report were among those alleging harassment and discrimination.

What happens now? The Forum is a $400 million organization with about 1,000 employees, and the bylaws require that at least one member of the Schwab family sit on the board. Schwab will have the sole right to name his successor on the board. Other board members include cellist Yo Yo Ma, BlackRock CEO Laurence Fink, Salesforce CEO Marc Benioff, former Vice President Al Gore and Accenture CEO Julie Sweet, among other financial and business luminaries, all of whom are almost certainly having some tense conversations this week about what’s next for the group.

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