The World Economic Forum (WEF) is an independent international organization, classified as a non-governmental organization (NGO) and think tank, committed to "improving the state of the world". It was founded on January 24, 1971, by German engineer and professor Klaus Schwab. The initial problem it sought to solve was to help European companies adopt American management practices and improve competitiveness by convening European business leaders in Davos, Switzerland. The organization was first called the European Management Forum and was established as a non-profit foundation.
The WEF's core mechanism is its stakeholder theory, which asserts that an organization is accountable to all parts of society, including employees, suppliers, and the community, not just shareholders. It works by engaging business, political, academic, and civil society leaders to shape global, regional, and industry agendas. Its most visible mechanism is the Annual Meeting held in Davos, Switzerland, which brings together approximately 3,000 participants for up to five days to discuss global issues. Beyond the Annual Meeting, the WEF operates through 11 Centres that advance work on systemic global challenges, and it hosts other gatherings like the Annual Meeting of New Champions in China and the Sustainable Development Impact Meetings.
The WEF connects to concepts like globalization and the stakeholder model of capitalism. Related institutions and concepts an informed reader should know include its affiliated organizations: the Forum of Young Global Leaders, the Global Shapers Community, and the Schwab Foundation for Social Entrepreneurship. A significant change occurred in 2015 when the WEF received the status of an international organization for public-private cooperation from the Swiss authorities. The core mission and the annual Davos meeting have remained the same, but the scope has broadened significantly from its initial focus on European management to addressing diverse global challenges like climate change, artificial intelligence governance, and economic resilience.