Professional Documents
Culture Documents
Contents
The Executive Chairman’s statement 2
Annual Meeting 4
Our people 26
Our organization 28
Sharing knowledge 32
www.weforum.org
Pictured on the cover, clockwise from top left, are: Dick Cheney, Vice-President of the United States of America; Vladimir Putin,
President of the Russian Federation; Pervez Musharraf, President of Pakistan, and Aleksander Kwasniewski, President of Poland
1
The Executive Chairman’s statement
Partnering for
security and
prosperity
The year 2003/2004 provided a welcome breathing reform in the Arab world. As important were the
space for the global community. After two years relationships made and bridges built that will engender
overshadowed by September 11, war in Iraq and future action.
financial volatility, it was a period of relative calm,
marked by no all-consuming crisis and with signs of Our regional activity again showed the Forum as
economic recovery. relevant, timely and proactive as we met influential
leaders, in key places, at the right time. The European
This respite generated a more optimistic mood among Economic Summit was held in Warsaw on the eve of
global leaders. Ironically, it also provided the space to European Union enlargement. The World Economic
reflect on the many complex risks that threaten us: Forum in Jordan positioned us in the Middle East as
from terrorism and uncertainty in the Middle East to the international community focused on the
corporate fraud and emerging pandemics. Such reconstruction of Iraq and the stability of the wider
global challenges can never be met alone, however region. We held our Asia Strategic Insight Roundtable
strong a nation, industry or company. Their complexity in Seoul one month after South Korean President Roh
and interdependence must be met by integrated and Moo-Hyun was reinstated following his earlier
interdisciplinary action – from business, government, impeachment, and we convened our Russia Meeting
religion and the wider community. To succeed, such 2003 in Moscow shortly before Duma and
cooperation requires a robust international framework: Presidential elections.
one that transcends barriers of politics, religion and
industry; that brings different organizations and Throughout the year, the Forum provides the tools and
individuals together in partnership, and has the resources our members need to pursue activities to
organizational capability to pursue pragmatic improve the state of the world. To deepen our value to
solutions. Alone among international organizations, the members during the year we continued to develop our
World Economic Forum provides this collaborative organization. Our new structure reflects and underlines
global framework. the Forum’s unique dual offerings: providing value to
both business and wider society. This is particularly
Our Annual Meeting 2004, which brought together reflected in the twin pillars of the new organization: the
2,280 leaders from 94 countries, demonstrated Centre for Strategic Insight and the Global Institute for
the value we provide. The theme Partnering for Partnership and Governance. The Centre devises
Security and Prosperity was aptly chosen as dynamic, incisive and relevant content for our summits,
participants emphasized the need for interdisciplinary including scenario building, based on an expert
cooperation. The benefits of such partnerships were understanding of global business and emerging risks.
immediately apparent. The raft of practical initiatives The Global Institute promotes public-private
announced ranged from programmes to provide IT partnerships to help address major international
centres for poor communities to pledges to economic challenges, from greenhouse gas emissions to IT
2
Lee Kuan-Yew, then Senior Minister of Singapore, with Klaus
Schwab, at October’s East Asia Economic Summit in Singapore
literacy. In doing so the Institute puts the non-business Rigorous management, and the more positive
community at the very heart of the Forum. Thus, it economic climate, helped us to achieve a strong
could be said that the Centre provides the environment financial performance. Despite a first half clouded by
for members to acquire and share knowledge and the continuing repercussions of the SARS outbreak
make the decisions and contacts to take action, while and the tail end of the economic downturn, our
the Global Institute provides the vehicles and initiatives income rose to Sfr.74,058,911. This will enable us to
to help them succeed. add Sfr.1,751,121 to our reserves, allowing us to
continue to invest in the Forum’s future.
We have recruited one of the foremost authorities in
scenario development, Ged Davis, to lead the Centre Youth has always been a key part of our identity,
for Strategic Insight. Ged held senior positions with the both in the age balance of our staff and in the
Royal Dutch/Shell Group, latterly as head of its constituencies of young leaders that we support. In
scenarios team. Outside the corporate world, he has May, we announced the creation of a dynamic new
undertaken scenario work for the World Business young leaders community. This Forum of Young Global
Council for Sustainable Development, the Leaders will bring together 1,111 men and women
Intergovernmental Panel on Climate Change Emissions from all walks of life who have shown commitment to
and UNAIDS. The Global Institute for Partnership and improving the state of the world. I am convinced they
Governance is headed by Rick Samans, who joined will go on to provide a true competitive advantage to
the Forum as a director in 2001. Rick, a former special the Forum, making it more forward-looking, innovative
assistant on international economic policy to the US and provocative, qualities essential if we are to help
President, is well qualified for this public-private role. achieve a more prosperous and peaceful future.
To make sure the new organization achieves optimum In terms of membership development, financial results,
performance, we introduced a change programme institution building, as well as human resources
called Waves. This far-reaching initiative involves three development, last year was the most successful in the
stages or ‘waves’, focusing sequentially on the history of the World Economic Forum. I would like to
individual, teams and the overall organization. The HR thank our members, whose engagement made this
team also laid the groundwork for a development and success possible.
coaching programme for the Forum’s senior managers.
I would like to thank all our people for their
www.weforum.org
3
Annual Meeting
4
Recep Tayyip Erdogan, Prime Minister of Turkey Jack Straw, UK Secretary of State for Foreign and
Commonwealth Affairs
• There is a need to address major international dedicated to providing credible, transparent and
issues in an integrated and interdisciplinary way standardized corporate GHG emissions data to
the general public. The register aims to stimulate
• A comprehensive and structured framework the disclosure and management of worldwide
for collaboration is required because global climate emissions by major companies
challenges cannot be met by any single
government, industry or business “Our principles will be of no value if they do not
• There is a need for a more proactive and translate into action... We are rising to this challenge,
pragmatic approach to supranational challenges
realizing that business and community go hand-in-hand.”
The Annual Meeting acted to address these Peter Bakker, Chief Executive Officer, TPG, the Netherlands
issues by providing a springboard for greater
business engagement in public-private • In a move to combat global corruption,
partnerships. Concrete actions included: a joint 19 leading international engineering and
initiative between Microsoft and the United Nations construction companies adopted a set of
that will provide US$1 billion to establish computer business principles for countering bribery.
centres in poor communities; a collaboration These businesses represent total annual
between the US Agency for International revenue in excess of US$70 billion. The
Development, VISA and the Foundation for principles were the product of a year-long
International Community Assistance to benefit effort by the World Economic Forum’s
microfinance clients in the developing world; and Governors for Engineering and Construction
the re-launch of the Trans-Atlantic Business Task Force, working closely with Transparency
Dialogue, which promotes closer commercial ties International and the Basel Institute on
between the US and the European Union. Governance. The companies have committed
to ‘zero tolerance’ of bribery and to the
The World Economic Forum also launched a development of a programme of internal
range of initiatives designed to promote positive systems and controls for implementing this policy
international collaboration. For example:
• The CEOs of eight logistics and transportation
www.weforum.org
• The Global Greenhouse Gas (GHG) Register was companies called on their peers to take the lead
officially launched and 11 companies confirmed in placing corporate citizenship at the heart of
their commitment to disclosing the amount of business strategy. In a joint statement under the
greenhouse gases produced by their worldwide Forum’s Logistics and Transportation Corporate
operations. It is the only global initiative Citizenship Initiative, they committed themselves
5
Annual Meeting
Olusegun Obasanjo, President of Nigeria Jean-Claude Trichet, President, European Central Bank
6
Carol Bellamy, Executive Director, United Nations Children’s Fund William J. Clinton, Founder, William Jefferson Clinton Foundation;
(UNICEF), New York President of the United States (1993-2001)
Western and Islamic worlds. The Council Millennium Declaration goals. The Declaration
includes 20 leaders from each of these set targets for peace, security, poverty, hunger,
five sectors, representing Western and education, health, environment and human
Islamic thought rights. The report found that during 2003, the
international community rated no more than four
Alongside optimism about a global economic out of 10 in any area
recovery and a hunger for better dialogue
between Islam and the West, there was also “All elements of society need to work much more
concern about the emerging challenges and risks
that face the world. These ranged from the effectively if we are to meet the [Millennium] goals by 2015.
potential financial crisis in China and turmoil in
No one group on its own can achieve the goals.”
Iraq to growing US deficits, corporate
scandals and the forthcoming US election. Sir Mark Moody-Stuart, Chairman, Anglo American Plc, United Kingdom
Further evidence of the challenges that lie ahead • A World Economic Forum survey Living
for the global community came from a series of Happily Ever After: The Economic Implications
reports and surveys published both before and of Ageing Societies showed how the combined
during the Annual Meeting, as a framework for effects of slower labour force growth and
discussion. These included: population ageing could undermine the
pension systems and broader economic
• The Voice of the People survey, carried out prospects of many developed countries.
exclusively for the World Economic Forum by The report pointed to greater immigration,
Gallup International. This revealed that half investment in technology and attracting
those questioned felt global security was poor additional workers into the labour force as
and that the next generation would live in a possible remedies
more dangerous world. It was based on
interviews with almost 43,000 people from 51 • A report from UNICEF and the Micronutrient
countries, representing the views of more than Initiative, Vitamin and Mineral Deficiency,
1.1 billion citizens concluded that a lack of basic vitamins
and minerals was damaging the health of
www.weforum.org
• The report of the World Economic Forum’s a third of the world’s population and holding
Global Governance Initiative concluded that back the economic development of most
governments, international organizations, countries in the southern hemisphere. The
business and civil society were not engaged report found that this lack impaired
sufficiently in realizing the United Nations intellectual development, compromised
7
Annual Meeting
Mikheil Saakashvili, President of Georgia Mario Monti, Commissioner for Competition, European Commission,
Brussels
immune systems, provoked birth defects and heads of state, 75 cabinet ministers, 52 heads of
consigned two billion people to lives below their non-governmental organizations, 250 media and
physical and mental potential opinion leaders, 164 academics, 28 religious
leaders from a variety of faiths and 18 international
The Annual Meeting provided a valuable trade unionists.
opportunity to identify and address the broad
spectrum of challenges to global security, The non-governmental organizations participating
prosperity and peace. For example, United Nations included Amnesty International, Human Rights
Secretary-General Kofi Annan urged business Watch, Transparency International, WWF, Save the
leaders to swing their support behind the Children, CARE, World Vision International and the
Millennium Goals and warned against a slide back International AIDS Vaccine Initiative.
into brute competition and “the laws of the jungle”.
The Annual Meeting once again provided a unique
“The United Nations must also protect millions of our barometer of leadership attitudes, with participants
returning home with new insights into global and
fellow men and women from the more familiar threats regional issues. They also built strong relationships
across communities and regions, helping to break
of poverty, hunger and disease.”
down international and cultural barriers and
Kofi Annan, United Nations Secretary-General promote understanding.
Mr Annan could not have chosen a more influential For more about the Annual Meeting 2004, visit
platform to deliver this message. More than half www.weforum.org/annualmeeting
the participants were business leaders drawn from
the world’s major companies, including 24 of the
Fortune 50 top businesses. There were also 31
8
Joseph Deiss, President of the Swiss Confederation and Federal
Councillor of the Economy, and Paola Ghillani, Chief Executive Officer,
Max Havelaar Foundation, Switzerland
Open Forum Davos 2004 Among the highlights were the sessions:
• Trade Round, Where There Is a Will, There Must
The second Open Forum Davos was attended Be a Way – which focused on such issues as
by more than 2,000 local people and was again the implications of the world trade discussions at
successful in developing public understanding Cancun, how to get negotiations back on track
and support for the global issues that were and the positive role for the private sector
discussed at the World Economic Forum.
• Globalization or Deglobalization for the Benefit
The event, organized jointly by the Forum, Bread of the Poorest? – this debate examined the
for All and the Federation of Swiss Protestant challenges ahead, drawing on the newly released
Churches, invited the general public to take part report of the International Labour Organization’s
in nine debates around the topic of Globalization World Commission on the Social Dimension
or Deglobalization for the Benefit of the Poorest? of Globalization
Following the success of the first Open Forum Other sessions covered labour rights partnerships,
Davos in 2003 the event evolved to engage the biodiversity agenda, financial crisis and
greater business participation and, consequently, globalization, children’s rights, and religion.
more in-depth, high-quality discussion.
A small number of anti-globalization demonstrations
Industry participants included such leading figures took place during the programme and some of
as Peter Brabeck-Letmathe, Vice-Chairman and these dissenting voices were given a platform to
CEO of Nestlé, and Travis Engen, President share their views. These interactions reflect the
and CEO of Alcan. Many local schoolchildren were Forum’s commitment to engage in dialogue with
also involved in the event. all parts of society.
www.weforum.org
9
Participants at June’s Africa Economic Summit, in Maputo, Mozambique, listen to Ndidi
Nwuneli, Founder and Managing Partner of LEAP Africa. The session on leadership also
included a contribution from South African President Thabo Mbeki, pictured far right.
10
The regional agenda
Building
global and
regional
partnerships
The World Economic Forum seeks to tackle the The NEPAD Business Group (NBG) (formed at the
critical issues facing every region of the world. In 2002 Africa Economic Summit and now comprising
2003/2004, we again worked closely with regional more than 350 African companies, business
partners to find solutions to such challenges and to associations and multinationals active in Africa)
deliver social and economic development. highlighted the need for business to act responsibly
in support of the NEPAD.
Africa
The 14th Africa Economic Summit in Maputo, Plans to create a NEPAD Business Foundation to
Mozambique reaffirmed the central role of business mobilize and direct the business contribution to well-
in the New Partnership for Africa’s Development managed projects were announced at Maputo. NBG
(NEPAD) but also highlighted the need to translate working groups in transport, energy, construction,
words and ambitious ideals into concrete action. financial services and information and
communications technology also reported their
Mozambique, with its impressive range of progress in developing action plans.
successful investment projects and model cross-
regional public-private partnerships, demonstrates
“Mr Mugabe is a bad lawyer who has a good cause...
just what can be achieved through exemplary
governance, sound leadership and a strong civil Because the cause he upholds – which is African land
society and acts as a beacon of hope for the
rest of Africa. rights – is fine. But it depends how you do it.”
Abdoulaye Wade, President of Senegal
To assess how to spread the best practice found
in Mozambique, summit participants visited some
of the country’s key development sites and sought The launch of the World Economic Forum Africa
to identify the crucial factors that would enable Competitiveness Report, which described the
these projects to be replicated elsewhere across continent’s dismal growth performance as “the
the continent. worst economic tragedy of the 20th century”,
generated a great deal of interest and concern at
Based on the case studies of recent successful an international level. In 2003/2004, the Forum’s
partnerships, such as the roll out of GSM telephony Global Health Initiative and Water Initiative
www.weforum.org
in Nigeria and the SASOL Natural Gas Project continued to play a valuable part in improving the
linking Mozambique and South Africa, participants quality of life for Africans.
discussed how to overcome such barriers as
access to finance, regulatory environments and For more information about the Africa Economic
capacity constraints. Summit, see www.weforum.org/africa
11
The regional agenda
12
heads of state from countries that could form the next Through a hugely successful collaboration with BBC
wave of enlargement, including Romanian President World, the summit also saw the international broadcast
Ion Iliescu and Georgi Parvanov, President of Bulgaria. of an hour-long debate involving key participants that
reached more than 250 million viewers worldwide.
The key themes that emerged included the need The debate explored the issues surrounding the
to step up efforts towards the goal of the Lisbon migration of jobs and people across Europe.
Agenda, a 10-year strategy to make Europe the For more information, visit www.weforum.org/europe
most competitive economy in the world by 2010.
Discussions followed the World Economic Forum’s The future of Far Eastern Europe was high on the
second Lisbon Review, which compared the agenda at the Annual Meeting, where European
economies of new and old Europe and concluded leaders present included Recep Tayyip Erdogan,
that the strongest new EU members could out- Prime Minister of Turkey, and Georgian President
perform the weakest older members. Mikheil Saakashvili, who introduced his economic
programme and invited foreign investment.
Debate also focused on the need to draw on the spirit
of the new EU members to drive entrepreneurship In 2003/2004, Forum initiatives continued to play
forward and the essential message that enlargement an important role in shaping the European agenda.
was part of an ongoing process. Beyond the EU’s As well as the Lisbon Review, the Global
borders, there are neighbours eager to identify with Competitiveness Programme also published The
the emerging European identity, a point highlighted Global Competitiveness Report, which provided a
by the presence of Leonid Kuchma, President of the unique appraisal of the performance of European
Ukraine, and three heads of state from the Caucasus. economies within its worldwide coverage.
A survey of business leaders, launched at the end Many European businesses continued to be involved
of the summit, revealed that 89% felt the inclusion in the Forum’s Global Corporate Governance
of the 10 new countries would make a positive Dialogue. Considerable scope remains to extend this
contribution to the debate on European economic initiative to countries in central and eastern Europe,
reform, with four-fifths believing EU expansion had where many companies continue to need guidance
not yet reached its limit. in the principles of corporate behaviour.
The debate included such key personalities as Günter He pointed out that after the fall of the Berlin Wall,
Verheugen, the European Union’s Commissioner for there were fears that 25 million workers might flood
Enlargement, Portuguese President Jorge Sampaio from East to West. In fact, there are now only
and Italy’s Minister of Innovation and Technology, Lucio 850,000 migrants from Eastern and Central Europe
Stanca. Viewers heard that public fears about migrants living in the West.
13
The regional agenda
The World Economic Forum’s Russia Meeting in summit used the occasion to voice strong support for
Moscow coincided with Russia recording the highest quickening economic integration in Asia, prior to the
growth rate of the post-communist era, its first 2020 deadline set by ASEAN’s leaders.
investment grade ranking, government action against
the Yukos oil company, and the eve of national elections. The China Business Summit in Beijing, in
November 2003, saw the joint efforts of the WTO,
the UNCTAD and IFC, under the umbrella of the World
“America wants the strongest possible Europe... Economic Forum, to support and enhance China’s
integration into the global trading and economic
You must not sell yourselves short, and settle for less
community. Five hundred business leaders heard a
than the military capability and influence you deserve.” call from the government for greater corporate
responsibility and also took part in a ground-breaking
Dick Cheney, Vice-President of the United States of America series of workshops to highlight the role of
partnerships between business, government and civil
The main thrust of the meeting was a broad society to combat the spread of HIV/AIDS in China.
scenario-building exercise, which captured the
attention of the meeting’s 400 business executives Also in November 2003, around 500 senior business
and analysts. Russia’s competitiveness and the leaders, experts, members of the government and
importance of its oil and gas industries were among senior officials convened for the India Economic
the key issues. The highlight of the summit was an Summit in New Delhi. Participants sought to assess
address by President Vladimir Putin, who expressed India’s competitiveness and to develop blueprints for
optimism for the country’s economy. success. For details, see www.weforum.org/india
Asia and the Far East The Asia Strategic Insight Roundtable in Seoul,
The East Asia Economic Summit in Singapore, Republic of Korea, was held in June in the wake of
held under the theme Asia’s Future: Recapturing President Roh Moo-Hyun’s return to office after his
Dynamism amidst the region’s recovery from SARS impeachment was overturned. Two hundred top
and in the aftermath of terrorist bombings in Bali and decision-makers, from business government and civil
Jakarta, was a striking symbol of Asia’s ability to come society convened to examine emerging challenges.
together at times of crisis. Business leaders at the Participants assessed future scenarios and
India
After Manmohan Singh meet in New Delhi to celebrate the 20th anniversary
became Prime Minister of of the India summit. They will discuss India’s
India in May 2004 one of achievements in areas of priority for the country’s
the first international sustained economic progress, especially in ICT,
visitors he received was biotechnology, pharmaceuticals, research and
Colette Mathur, the World development, auto components, manufacturing,
Economic Forum’s India outsourcing and foreign investments, while
Colette Mathur, Director, India and South Asia, World Economic and South Asia director. identifying areas where further reforms and progress
Forum, meeting with Indian Prime Minister Manmohan Singh must be achieved.
Their meeting reflected the close and trusting
relationship that India and the Forum have enjoyed for Mathur said that the Forum had been an advocate
two decades. A relationship that began formally in for the potential and quality of Indian industry, long
Geneva in 1984, when then-prime minister Rajiv before its recent economic boom. She said: “The
Gandhi agreed to host an inaugural India Economic Forum always shared its expertise and experience
Summit the following year. with the country. Going forward, we can support
India on such key issues as reform, on foreign
In December 2004, leaders of India’s business and investment, and in the growing multinationalism of
political community and their international peers will the business sector.”
14
developed new strategies in response to such administration’s position in the aftermath of the war
challenges. See www.weforum.org/eastasia during the Annual Meeting. He was joined at Davos
by 15 Members of Congress from both the
In February 2004, members of the World Economic Republican and Democratic parties. The US also
Forum’s New Asian Leaders (NALs) community held sought to address concerns about Iraq at the World
their official retreat in Malaysia. His Majesty King Economic Forum in Jordan summit, where Secretary
Abdullah II of Jordan gave a keynote address and of State Colin Powell led a delegation that met Arab
took a leading role at a meeting between the NALs leaders in the aftermath of the Abu Ghraib prison
and the Arab Business Council. abuse scandal.
economies and the region’s growing energy demands. The leaders agreed there was a need for constant
monitoring of the tensions and uncertainties around
Among key themes to emerge was a cautious the Korean peninsula, Taiwan Straits and
optimism for the entire region fuelled by the India/Pakistan, which threatened to overshadow
economic success of China and India, although investment decisions.
15
Business has an important role to play in managing climate change and investors,
consumers and NGOs are all seeking information about how companies are tackling
the issue. The World Economic Forum’s Global Greenhouse Gas Register is the only
platform that enables companies to provide comparable and comprehensive emissions
data to the public.
16
Global Institute for Partnership and Governance
Advancing the
spirit and
practice of
global citizenship
In 2003/2004, the World Economic Forum e-curricula in mathematics. The impact of JEI
established the Global Institute for Partnership and reforms at 96 designated ‘Discovery Schools’ was
Governance. The Global Institute works to advance felt by 17,500 pupils and 500 teachers. The JEI also
the spirit and practice of global citizenship through supported the development of the kingdom’s IT
specific acts of collaborative problem-solving. It industry with each e-curriculum being developed
provides a platform for multistakeholder jointly by international and Jordanian IT companies.
partnerships that seek to tackle global challenges
by catalysing action, improving governance and “What we really need to do is to stop new people from
bridging perspectives.
being infected [with HIV/AIDS]. The most dramatic thing
Global Health Initiative (GHI)
The GHI seeks to increase business efforts to tackle
would be a microbicide or a vaccine.”
HIV/AIDS tuberculosis and malaria. It serves as a Bill Gates, Co-founder, Bill and Melinda Gates Foundation
focal point for private sector engagement with the
Global Fund to Fight AIDS, TB and Malaria, and the Global Greenhouse Gas (GHG) Register
Stop TB and Roll Back Malaria partnerships. In 2003/2004, the Forum, in partnership with
business and environmental groups, launched the
The initiative continued to work with Forum member Global Greenhouse Gas Register. This is the first
companies and bodies such as the World Health international initiative dedicated to providing
Organization, the Joint United Nations Programme comparable and comprehensive corporate
on HIV/AIDS, the International Labour Organization, greenhouse gas emissions data to the public. It
and the World Bank in southern Africa, India and gives companies from all regions and industry
south-east Asia. It launched the India Business sectors the chance to show how much GHG they
Alliance to Stop TB, which will serve as a model for produce, and what they are doing about it. Eleven
similar initiatives in other regions. It also published major businesses signed up to the register. These
the first report on the global business response to companies emit an estimated 800 million tons of
HIV/AIDS, suggesting that companies are not yet carbon dioxide equivalent per year.
playing a significant role in tackling the pandemic.
Water Initiative
Jordan Education Initiative The Water Initiative facilitates multistakeholder
www.weforum.org
The Jordan Education Initiative (JEI) brings together co-operation in the management of watersheds. Water
nearly 30 companies with the Jordanian authorities is a key resource and the initiative strives to improve
to transform public education through technology. In the quality and quantity for business and communities.
2003/2004, it accelerated curricular, teaching and Its activities in 2003/2004 included the launch of the
infrastructure reforms in 50 schools and introduced Africa Water Project Exchange, which successfully
17
Global Institute for Partnership and Governance
matched five water-related projects with potential Wyatt Worldwide, an assessment of the readiness of
funding organizations. For more information about Organisation for Economic Co-operation and
the initiative, see www.weforum.org/water Development (OECD) countries, which is intended as a
tool to spur greater action.
“At Alcan, we now know that whether we are managing
Global Corporate Citizenship Initiative
a watershed or a harbour, we have an inescapable More than 70% of CEOs surveyed by the World
Economic Forum believe that mainstream investors will
duty to the larger community.”
develop a greater interest in corporate citizenship
Travis Engen, CEO of Alcan Inc, Canada issues. The findings were published in a major report
entitled Values and Value: Communicating the
Global Governance Initiative Strategic Importance of Corporate Citizenship to
The Global Governance Initiative monitors the efforts Investors. The Global Corporate Citizenship Initiative
of governments, the private sector, international focuses on improving corporate social responsibility
organizations and civil society towards the goals of programmes. It hosted three roundtable discussions
the United Nations Millennium Declaration. These on ‘Mainstreaming responsible investment’.
objectives relate to poverty, conflict, health, education,
the environment, human rights and hunger. In 2004, Council of 100 Leaders
the initiative’s first annual report concluded that the The Council of 100 Leaders was launched at the
international community was investing less than half Annual Meeting with a debate on Promoting Inter-
the effort needed to meet these targets. Civilizational Dialogue and Action. This was followed by
a debate on Modernism, Secularization and Religion at
Pension System Readiness Initiative the World Economic Forum in Jordan. The council
Increased life expectancy is putting unsustainable seeks to support projects that address problems
pressure on pension systems. The Pension System facing society in the areas of education, justice,
Readiness Initiative brings together leaders from the peace, advancing development, social justice and
financial services and employment sectors with senior human rights.
citizens’ groups, labour unions and governments to
assess international retirement system readiness. For more about the Global Institute for Partnership and
During the year, the initiative developed, with Watson Governance, see www.weforum.org/GIPG
18
Centre for Strategic Insight
In 2003/2004, the Forum established the Centre for It received extensive positive international attention.
Strategic Insight to identify emerging risks and to Several events were arranged in conjunction with the
help shape the global business and political agenda. publication, including a session in Washington DC,
The Centre seeks to deliver a sound understanding with commercial attachés, and a competitiveness
of the challenges facing the world and to guide panel debate in New York.
global corporate and government policy.
The programme launched three other publications
The Centre is organised into four core teams, during the year: The Global Information Technology
focusing on: business insight; global insight; Report, the Lisbon Review and The Africa
economics and competitiveness; and global and Competitiveness Report. The competitiveness team
regional agendas. These teams aim to develop held sessions at the Annual Meeting and regional
a unique understanding of the challenges facing summits and presented their work at a series of
every region and to focus the World Economic national conferences.
Forum’s meetings, task forces and initiatives on
those issues that will have a major impact on The Centre for Strategic Insight began to assess
economic development, both today and tomorrow. risks facing the global economy ranging from
terrorism to those associated with science and
Ged Davis, former head of scenario planning at technology. Working with a strategic partner, it will
Royal Dutch/Shell, heads the new Centre. Working produce a twice-yearly assessment of global risks.
closely with the Forum’s networks and communities Plans were also drawn up for a new fortnightly
he has begun to develop a programme of concrete members’ publication to include strategic insight
projects. For example, one initiative was launched to updates and reports on key industry sectors.
assess likely political and economic developments in
India and another to identify breakthrough For more information about the Centre for Strategic
management ideas. Insight, see www.weforum.org/CSI
key individuals, including consultants, entrepreneurs, Strategic Insight launched the India and the World
academic research directors, editors and others with scenario project. Working with senior executives
a broad view of new and innovative ideas. from global companies, other thought-leaders and
scenario practitioners, the project sought to
www.weforum.org
The team contributed around 10 ideas to be used anticipate a range of possible futures for the
in the Harvard Business Review’s list of new subcontinent. The knowledge will be used to build
management ideas, to be published early in 2005, robust strategies to meet coming challenges. Similar
and presented to the next Annual Meeting in Davos. exercises are planned for Russia and the Arab world.
19
In 2003/2004, the coverage of The Global Competitiveness Report was extended from 80
to 102 countries and particular efforts were made to include those in sub-Saharan Africa.
20
Our members and partners
Committing to
our mission
The World Economic Forum works with influential Broadcasting Group Plc, Carlyle Group, CDP
companies from all industry sectors and every Capital (Caisse de Dépôt et Placement du
region of the globe. Together we seek to tackle Québec), Centre of Excellence for Applied
the most complex and challenging issues facing Research & Training (CERT), China Aviation Oil
mankind and to improve the state of the world. (Singapore) Corporation Ltd, Chiquita Brands
International Inc., CNBC, Coinvertir – Corporacion
Members Invertir En Colombia, Columbia House Company,
Our members represent the world’s 1,000 leading Commercial League National Pharma Center Inc.,
companies, including 200 smaller businesses, Covington & Burling, Daesung Group, Dallah Al
many from the developing world, which play a Baraka Holding Co., Danaher Corporation, Dentsu
potent role in their industry or region. They are Inc., Dr Reddy's Laboratories Ltd, Dubai
more than just influential and powerful. Many are International Financial Centre (DIFC), Dyno Nobel
also innovative and inspiring organizations that Asa, eBay Inc., Emaar Properties PJSC, Emirates
challenge conventional thinking and are committed National Oil Company Ltd, Escorts Limited, Fast
to making the world a better place. Retailing Corporation (Uniqlo), FLAG Telecom
Group Ltd, Ford Motor Company, Fuji Television
Reflecting our belief that global and regional Network Inc, Grupo IUSA, Guangzhou
problems are too large and complex to be solved Development Industry (Holdings) Co. Ltd,
by any single organization, our members work Halcrow Group Ltd, Havas Group, Hayel Saeed
together and with communities of leaders from Anam Group of Companies (HSA Group),
academia, government, religion, the media, non- Hikma Pharmaceuticals, HSBC Bank Plc,
governmental organizations and the arts. Hyperion Solutions Corporation, International
Container Terminal Services Inc. (ICTSI),
During 2003/2004, the following companies were Interros Holding Company, Isu Group, Japan
accepted as members of the World Economic Aerospace Exploration Agency (JAXA), Japan
Forum: AirAsia Bhd, Ajit Khimji Group of Tobacco Inc., JSW Group, Jubilant Organosys Ltd,
Companies LLC, Alcoa Inc., Al Futtaim Trading Keppel Corporation Limited, Koç Holding AS,
Group, Al-Ghurair Group of Companies, Allied Konka Group Co. Ltd, Lenenergo JSC, Liberty
Capital, AlpInvest Partners NV, AMD (Advanced Mutual Group, Lucent Technologies Inc., Lupin Ltd,
www.weforum.org
Micro Devices Inc.), Anglo American Corporation of Maeil Business Newspaper and TV, Mansour
South Africa Ltd, AngloGold Ashanti Limited, Attar Group, Mercer Inc., Metro AG, Mobile
Group, Aveng Limited, Baker & McKenzie, Bank Telecommunications Co., NASD, National Bank of
Leumi Le-Israel BM, Beijing Capital Group Co. Ltd, Greece, National Bank of Oman (SAOG), National
Belgacom NV, Bin Zayed Group, British Sky Foundation for Teaching Entrepreneurship (NFTE),
21
Our members and partners
22
Our communities and constituencies
Harnessing
expertise and
capabilities
Two IBC meetings were held in summer 2003, in In other sectors, initiatives in the engineering and
Geneva, and in winter 2004 at the Annual Meeting in construction arena led to 19 companies adopting
Davos. Several members also participated in the principles for countering bribery, while in logistics
Forum’s summit in Jordan, which provided an and transportation, CEOs took steps to promote
opportunity to reaffirm their commitment to peace in corporate citizenship to their peers.
the region.
The Governors meet at the Annual Meeting and assign
Industry Governors representatives for Forum initiatives. They also attend
www.weforum.org
Industry Governors are made up of CEOs from major industry-specific events. For example, 20 Governors in
companies within specific industry groups. During the the communications and technology sector attended
year they continued to address issues of primary a roundtable on digital rights and intellectual property.
importance to their sectors and provide intellectual
stewardship to the Forum’s efforts, such as our See www.weforum.org/WEFcommunities
23
Our communities and constituencies
Lord Carey of Clifton, former Archbishop of Canterbury, at the From left: Brian Bruce and Millard Arnold of industrial and
Annual Meeting 2004, in Davos infrastructural holding company Murray & Roberts and Nick Moon
and Martin Fisher of NGO ApproTEC at the Annual Meeting
24
Technology Pioneers Annual Meeting with Bread for All and the Federation
Technology Pioneers are drawn from the most of Swiss Protestant Churches, and sessions were
innovative companies in the world. In 2004, in line organized with the Terre des Hommes Foundation,
with the World Economic Forum’s commitment to the Max Havelaar Foundation and IUCN – The World
encouraging dialogue between technology innovators Conservation Union. Oxfam attended our summits
and members, the constituency was fully integrated in Europe and Africa.
into the Annual Meeting. The Forum ensures the
quality of Technology Pioneers through a rigorous The Forum continued its dialogue with anti-
evaluation. Out of 114 candidates, only 30 globalization campaigners, exchanging views with
Technology Pioneers were selected for 2004. key leaders within the alter-globalization movement.
Social Entrepreneurship
Rory Stear is founder and CEO of the Freeplay telephone chargers and
Energy Group (FEG), which develops products flashlights. All are
based on self-sufficient energy technologies. The designed to meet the
South African is among 16 people nominated in demand for low-cost,
2003/2004 as members of the Schwab Foundation durable, self-powered
for Social Entrepreneurship network. products for use in the
developing world.
The Freeplay Energy Group’s wind-up radio is
FEG was founded in 1994 to give energy access Sustainable radio helping to spread education and information
to all. In 1996, its first product was the wind-up programming offers a in the developing world
radio, which has been a significant means of lifeline of information to
spreading education and information (from vulnerable populations with low literacy levels and
HIV/AIDS awareness to home-study English and limited access to electricity, television or
mathematics) among those least able to afford telephones. FEG launched the more powerful and
www.weforum.org
communication technology. Since then FEG has durable Lifeline Radio in 2003. This has already
developed other technologies that have helped played a major role in disaster relief and
them to improve the radio design and broaden disarmament projects in Burundi, Mozambique,
their product range to include medical instruments, Tanzania, Niger and Rwanda.
25
The World Economic Forum has a highly talented and educated staff, with a cultural diversity that
matches its global membership. Below, two colleagues from the Forum’s IT and Communications
teams tackle an outdoor challenge as part of a team-building exercise.
26
Our people
Talent from
around the
world
27
Our organization
Exemplary
governance
28
Structure Forum activities
The World Economic Forum’s structure continued
to evolve with the creation of three new core Annual Summits
departments: the Global Institute for Partnership
and Governance, the Centre for Strategic Insight,
and Events. Publications, Communities
Strategic
Reports & Intelligence
Newsletters
The new departments replaced our previous practice
Regional Industry
structure and enhanced our ability to build and Communities Communities
policymakers to create relevant strategic insight. regional summits, and for ensuring that their
programmes take advantage of knowledge gained
There is particular emphasis on identifying by the Global Institute for Partnership and
emerging risks and developments that will shape Governance and the Centre for Strategic Insight.
the business and political agendas. The Centre
29
The Forum leadership
The 2003/2004 World Economic Forum Managing Board with the Executive Chairman. From left, Rick Samans, Frédéric Sicre, Ged Davis,
Klaus Schwab, José María Figueres, André Schneider, Michel Ogrizek
Ged Davis
Managing Director, Centre for Strategic
Insight, and Acting Managing Director,
Community Management
Michel Ogrizek
Managing Director,
Head of Communications
Rick Samans
Managing Director,
Global Institute for Partnership
and Governance
André Schneider
Managing Director and Chief Operations
Officer, Events and Resource Management
Frédéric Sicre
Managing Director, Regional Strategy
30
The Forum community
The commitment and expertise of our people drive the World Economic Forum’s activities and enable us to
achieve our goals. At 30 September 2004:
31
Sharing knowledge
An open and
connected
organization
32
Participants at the May World Economic Forum in Jordan, online at the Editorial teams in the Davos Broadcasting Village monitoring World
summit’s Internet café Economic Forum Annual Meeting debates
had doubled. We also tripled favourable reporting We strengthened our in-house publishing capacity,
of the European Economic Summit and received developing a dynamic publications strategy under
the best ever international coverage of The Global a new editorial director. Our brochure, The World
Competitiveness Report. Economic Forum: Entrepreneurship in the Global
Public Interest, was named the best institutional
Increased Web activity gave us access to a brochure in the UK’s prestigious Communicators in
broader, far flung audience. We increased traffic Business Awards 2004, ahead of competition from
on our website by 60%, including 1.6 million page 18 other major organizations.
views in January alone. We took part in online
collaborations with leading media organizations We continued our two-year relationship with
covering four continents: including the BBC, the opinion research company Gallup International. On
Wall Street Journal, the Financial Times, Le behalf of the Forum, Gallup surveyed 50,000
Monde, El Pais, the influential Latin American site people from more than 50 countries, representing
Portal Exame, leading Middle East online provider the opinions of more than 1.2 billion citizens.
Zawya, OhmyNews, which reaches 25 million Topics included the key themes of the Annual
Korean citizens, and India’s Rediff site. Meeting 2004: security and prosperity.
international role of the Forum and facilitated the Co-operation, the Centre for International
course of non-violent demonstrations. Governance Innovation and the Bill and Melinda
Gates Foundation.
33
Our financial
results
72,195,453
66,454,727
74,058,911
human society’.
34
Key figures
Surplus to be
added to the
Foundation capital 1,684,507 249,759 3,118,445 205 1,751,121
Total staff
Full time 81 125 139 130 134
out of which are seconded
by Forum members 4 4 5
Part time 22 22 28 28 28
35
Our mission
and values
The World Economic Forum is the foremost global The World Economic Forum enjoys unique global
community of business, political, intellectual and positioning by recognizing and responding to two
other leaders of society committed to improving the new developments:
state of the world.
• The world’s key challenges cannot be met by
Our mission is best realized through activities governments, business or civil society alone
which promote economic and social development. • In a world characterized by complexity, fragility
We believe that economic progress without social and ever-greater synchronicity, strategic insights
development is not sustainable, while social cannot be passively acquired. They are best
development without economic progress is not developed through continuous interaction with
feasible. Our motto is thus ‘entrepreneurship in peers and with the most knowledgeable people
the global public interest’. in the field (learning communities)
36
Quincy Jones, Chairman and CEO, The Quincy Jones Listen Up Foundation, USA, at the
Annual Meeting 2004.
37
Designed and edited by Wardour Communications
Contact details: