Solidarity in a challenging year

Annual Report 2001/2002

Following their discussions at the Annual Meeting 2002 in New York, US Treasury SecretaryPaul O'Neill and rock star Bono visited Ethiopia as part of a joint tour of Africa. The tourmarked a step forward for the continent. Since their return, the US government has putforward initiatives to address the AIDS epidemic and improve education in Africa.

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The World Economic Forum is an

independent international

organization committed to

improving the state of the world.

The Forum provides a collaborative

framework to address global

issues, engaging world leaders –

particularly its corporate members

– in global citizenship.

The president’s statement 2

The global agenda: Annual Meeting 4

The regional agenda 6

Task forces and initiatives 10

Our members and partners 16

Our communities and constituencies 18

Our people 22

Our organization 24

Our mission and strategic vision 31

Our values and principles 31

Our financial results 32

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The president’s statement

The World Economic Forum has achieved much in adifficult year. The attacks of 11 September, thefinancial downturn, international tension and abreakdown of trust in corporate governance allcreated a sense of global uncertainty. Against thisdisturbed backdrop our membership and internalteam delivered in line with their key objectives.

A clear example was the Annual Meeting held inNew York in early 2002. Our team relocated theevent from its traditional home in Davos, Switzerlandin just 12 weeks. We are proud of this achievementand of being able to provide a platform for worldleaders to show their solidarity with New Yorkers sosoon after the attacks. This speed of relocation isemblematic of the drive and purpose of our people.Significantly, it increased understanding in the US ofthe World Economic Forum’s mission.

In 2001/02 various outcomes showed that the WorldEconomic Forum is succeeding in its aims ofbecoming an integrator of the best minds and acatalyst to creating innovative, challenging ideas. HereI highlight three specific examples of how the WorldEconomic Forum served as a platform and – I believe– as a prompt for our members to deliver solutions tosignificant global issues:

1) Our Global Digital Divide Initiative, which is focusedon bringing digital technology to the developingworld, took significant steps. Following discussionsat the Annual Meeting 2002, President ThaboMbeki of South Africa was able to announce thatMicrosoft would supply free software to all 32,000government schools in his country.

2) Our Global Health Initiative Executive Statementwas well received by corporations, governmentsand medical leaders alike. The health initiative isdriven by a partnership between the WorldEconomic Forum’s member companies, the WorldHealth Organization and the Joint United NationsProgramme on HIV/AIDS. Among the ExecutiveStatement’s objectives is a 50% reduction in thedisease burden of TB and malaria, and a 25%reduction in HIV by 2010. In addition the WorldEconomic Forum assisted the Global Fund to FightAIDS, TB and Malaria by advising them on how toengage the private sector.

3) Canada’s Prime Minister, Jean Chrétien, announcedat the Annual Meeting the creation of a US$ 500million fund by the G-8 for African countriescommitted to reform. This action followed thestrong involvement of the World Economic Forumin the launch of the New Partnership for Africa’sDevelopment (NEPAD).

The World Economic Forum is well-placed to help itsmembers meet the societal challenges ahead and toensure that economic activities serve the global publicinterest. At this time, when trust in organizations of alltypes around the world is low, we are more committedthan ever to transparency in our activities. In 2001/02we reaffirmed the values and principles which guide usin several corporate documents.

Solidarity in a challengingyear

Our team is stronger than ever before. It increased insize from 147 people to 171, broadening the range ofexperience, cultural diversity and talent we offer. Ourmanagement team has also been strengthened. Thiswill help us to both deliver on a day-to-day basis andto ensure that we have the necessary skills andexpertise to focus and develop our strategic offering.

After former President of Costa Rica José MaríaFigueres joined us as a managing director in 2000,bringing vital governmental experience, we appointeda new director of communications. Michel Ogrizek,who previously fulfilled global communications remitsat Unilever and UBS Warburg, started working withus in August 2002. He will help with the keychallenge of communicating our mission in aglobalized world. In addition, we strengthened ourorganizational capability, developing the newgovernance system and extending our IT resources.

Our finances remain robust and we have continuedto manage them prudently and effectively with afocus on future needs. In the year under report,our income increased by 13% to Sfr. 72,195,453.This allowed us to boost the amount spent on ourhigh priority activities and on essentialinfrastructure by nearly 9% to Sfr. 69,077,008. Thesurplus has been added to Foundation Capitalwhich now stands at Sfr. 12,114,753.

The strength of the balance sheet and managementteam and our organizational capability will beimportant in the months and years to come. Asglobal leaders we all bear the responsibility forrebuilding trust in corporate and governmentinstitutions. It is in our own interests, and those ofsociety, that we act together to find solutions.

The role of the World Economic Forum ispermanently changing to be responsive to thechallenges of our time. In 2001/02 the Forumcontinued its progression from being the convener ofevents, which uniquely engage all stakeholders in civilsociety, to becoming a leading strategic insight body.This progression will continue throughout the years tocome. It is mine and my colleagues’ intention that theWorld Economic Forum will become the leadingstrategic insight organization in the world. As such theWorld Economic Forum will continue to support globalleaders, from all sectors of society, by enabling them toidentify the key issues and scenarios that face us all,and – most importantly – the actions that they musttake together to improve the state of the world.

Klaus SchwabFounder and President of the World Economic Forum

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Klaus Schwab

The Annual Meeting 2002 brought together morethan 2,700 leaders from business, government,academia, the media and civil society.

It convened for the first time in New York City as asymbolic act of solidarity with the city, after theattacks of 11 September. These tragic eventsbrought home to all of us how fragile our world is.In line with this insight, we built the meeting aroundthe theme of Leadership in Fragile Times: a Visionfor a Shared Future. Sessions thus concentratedon six areas: advancing security and addressingvulnerability; re-evaluating leadership andgovernance; redefining business challenges;reducing poverty and improving equity; restoringsustained growth; and sharing values andrespecting differences.

The Annual Meeting achieved progress in many ofthese areas. In particular, it was significant indeveloping relationships between the constituenciesfrom all walks of life that took part, 45% of whomcame from outside the world of business.

In particular, the 42 religious leaders who participatedhelped build a greater understanding of differentvalues and cultures. In addition, there was asignificant Arab presence. Forty young Arab leaderswere integrated into the full Annual Meeting and wesaw the highest ever participation of Saudi Arabiansat a World Economic Forum event. This strong Arabpresence helped participants to better grasp thecomplex relationship between Islam and the West.

Ratio of Annual Meeting Participants 2002

Business

Public figures

Academicexperts

Global Leadersfor Tomorrow

Technology Pioneers

Media Fellows

NGOs

Religious leaders

Other constituents

The global agenda

AnnualMeeting2002 inNew York

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Participants in the Annual Meeting 2002

Rabbi Israel Meir Lau, Ashkenazi Chief Rabbi of Israel, andCardinal Francis Arinze, President of the Pontifical Council for Inter-Religious Dialogue

Rudolph W. Giuliani, former Mayor of New York, addressesthe Annual Meeting 2002 of the World Economic Forum

There was a major focus on interactivity, withworkshops and interview-style panel discussions oncrucial global, regional and industry issues. As such,the Annual Meeting was not a meeting in the traditionalsense, but more the flagship for the World EconomicForum’s larger set of activities, including regionalknowledge meetings and initiatives.

The Annual Meeting, in common with all WorldEconomic Forum activities, aimed to identify tangiblesolutions to the most urgent challenges facing theworld today. The outcomes delivered included:

• The signing of a Global Corporate Citizenshipstatement by 36 CEOs, representing companiesfrom various industry sectors and geographicalregions. The statement recommends aframework for action to manage the impact ofbusiness on society and to strengthenrelationships with stakeholders around the globe

• The announcement of a contribution of US$ 50 million by the Gates Family Foundationfor AIDS prevention in Africa. This sum included a US$ 20 million donation to the trial of apromising microbicide that could potentially helpprotect women from HIV/AIDS

• The creation of a Disaster Response Network,leveraging the resources of businesses inengineering and transportation to assist withdisaster relief efforts

• A declaration by Canada’s Prime Minister JeanChrétien that the G-8 group of nations is creatinga US$ 500 million fund to help African countriescommitted to reform. The fund will assist Africangovernments to build a durable peace, addresstheir health crises, strengthen democracy andopen potential for trade and investment

For more information about the Annual Meeting2002 visit www.weforum.org/annualmeeting

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“By holding their 2002 Annual Meeting in New York, the World

Economic Forum served as a resounding endorsement of New

York City's sustained vitality. We can't think of a more appropriate,

courageous and optimistic milieu for the Davos Meeting to be held

than in the most diverse city in the world, which also happens to

be the financial capital of, and a global economic partner, to the

world. This is a tremendous vote of confidence in our city. It sends

a message that New York is back in business, and that New York is

the place to be for world leaders and decision-makers.”

Rudolph W. Giuliani, former Mayor of New York, Annual Meeting 2002

Shimon Peres, Minister of Foreign Affairs and Deputy Prime Ministerof Israel, and Hillary Rodham Clinton, Senator from New York

Tore Godal, executive secretary of GAVI Secretariat, Switzerland,and Pascal Mocumbi, Prime Minister of Mozambique

Gloria Macapagal Arroyo, President of the Philippines, at the World Economic Forum's East AsiaEconomic Summit 2001, held in the Hong Kong Special Administrative Region.

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Our regional agenda focuses on high priority issuesrelevant to local members operating in differentregions. In 2001/02, the World Economic Forumbrought together thousands of decision-makers toaddress the most crucial regional issues of today.

Asia Pacific and ChinaChina continued to develop its economic baseduring the course of 2001/02. However, difficultiesremained in the Japanese economy andthroughout the region there was an over-relianceon the US and other western markets.

The World Economic Forum recognized the needto ensure the entire region benefited from China’sgrowing strength. It was uniquely positioned tobring together 600 leaders to address issuessurrounding market development at the ChinaBusiness Summit 2002 in Beijing. (For moreinformation visit www.weforum.org/china)

The World Economic Forum also acted to maintainthe momentum in the Chinese economy with thelaunch of the New Chinese Economic Leadersprogramme. It will support a new generation ofChinese leaders from all walks of life as theyconfront the social and economic challenges ahead.

Taking a long-term view of Japanese recovery, inthe closing weeks of the financial year, the WorldEconomic Forum began to develop its ‘blueprintfor Japan’. Young Japanese leaders from thebusiness, government and academic arenas wereasked to identify and define how to surmount thecountry’s ten biggest challenges in the years up to2020. Their plan will be delivered to the AnnualMeeting 2003 in Davos.

At the India Economic Summit a council of chiefexecutives from both India and abroad wascreated. The India Advisory Council will advisethe World Economic Forum on strategies forbuilding confidence, increasing investment anddelivering prosperity in the subcontinent. (Seewww.weforum.org/india)

The World Economic Forum again brought leaderstogether to discuss regional issues at the East AsiaEconomic Summit in Hong Kong in October 2001.Although advances were made, discussion at theevent was inevitably dominated by the impact of theterrorist attacks of 11 September in New York andWashington. (For more details seewww.weforum.org/eastasia)

The regional agenda

Addressingcrucial localissues

“It is not the case that most people wish to reverse

globalization. It is that they aspire to a different and better

kind than we have today.”

Kofi Annan, Secretary-General, United Nations, Annual Meeting 2002

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The regional agenda

Africa and the Middle EastIn Africa, the World Economic Forum was instrumentalin winning business trust in the New Partnership forAfrica’s Development (NEPAD). The partnership aimsto eradicate poverty and achieve sustainable growthbut, as business felt it had not been consulted aboutits creation by African governments, it was largelysceptical about its prospects for success.

The World Economic Forum provided a platform for theregion’s leaders to overcome this scepticism and winprivate sector support, both at the Annual Meeting inNew York and at the Africa Economic Summit inDurban, South Africa. More than 200 African andmultinational companies signed a declarationcommitting their businesses to supporting the NEPAD. (For more information see www.weforum.org/africa)

In the Middle East, economic stability was threatenedby tensions with Israel. The World Economic Forum’sAnnual Meeting 2002 provided an opportunity forIsraeli and Palestinian business leaders to hold privatemeetings. They made a joint statement pledging toseek closer relations. The statement was co-deliveredby Dan Gillerman, the Israeli ambassador to the UnitedNations, and Walid Najjab, a board member of thePalestinian Electricity Company.

Following this statement, as a gesture of goodwill,Israeli business played an important role inpersuading its country’s customs authority torelease a shipment belonging to Palestine CellularCommunications Limited.

In the Arab world, promising young leaders have oftenfound it difficult to come to the forefront on theinternational stage. At the Annual Meeting 2002, theYoung Arab Leaders community was launched. Theaim of the initiative is to identify young people from theArab world that are poised to assume key positions inareas such as business, academia and politics.

North AmericaIn North America, the war on terror and corporateaccounting scandals exacerbated an alreadysluggish economy. Despite this, the WorldEconomic Forum helped to inspire new moves bythe US government to relieve the plight of some ofthe world’s poorest people. The World EconomicForum’s unique role in bringing people together fromdifferent walks of life was highlighted when Irish rockstar Bono met US Treasury Secretary Paul O’Neill atthe Annual Meeting in New York. There, theydiscussed the possibility of writing off debts incurredby some of the world’s poorest countries.

Following this meeting Bono and O’Neill went on atour of Africa, including Ghana, Uganda, South Africaand Ethiopia, where they met doctors, farmers,teachers, students and entrepreneurs. The tourmarked a step forward for the continent. Since theirreturn, the US administration has put forward initiativesdesigned to address the AIDS epidemic and thecontinent’s weak education infrastructure, which hassuffered neglect in countries crippled by debt.

In May, leaders from around the world discussedprospects for the American economy at the USAMeeting 2002 in Washington. Following 11 September,they also focused on likely scenarios around theeconomic and social impacts of terrorism. (See www.weforum.org/usa)

Latin AmericaEconomic turmoil in Latin America, particularly in Argentina, continued to hinder growth and socialequality. In response, the World Economic Forumsought to harness the private sector behindeconomic and social reforms as a step to future growth.

The Annual Meeting 2002 provided an opportunity forpolitical and business leaders to discuss ways ofsolving the crisis in Argentina. They focused on politicalinstitutions, competitiveness, foreign trade and financialsystems. Working with the new Argentiniangovernment they made key recommendations forchange. Latin American business leaders held a follow-up meeting in Washington to further address the mainissues affecting the region.

“There is no way that Africa can benefit from

globalization without industrialization. Can globalization

deliver?…Only if there is cooperation between North and

South and rich and poor.”

Benjamin William Mkapa, President of Tanzania, Annual Meeting 2002

The Bridging Europe initiative demonstrated theWorld Economic Forum’s commitment to buildingcommunities of current and future leaders whoshare our mission.

The initiative was designed to tackle politicalindifference and the perceived gulf between theEuropean Union’s institutions and its citizens. Itunited 1,000 young people, from 33 countries, inan online dialogue with leaders from Europeanpolitics, business, non-governmental organizationsand academia.

The initiative was run in partnership with theDanish think-tank Monday Morning. Following thenine-week dialogue, the young people travelled toDenmark for the Youth 2002 meeting. At thisevent, they presented a draft proposal for a newEuropean constitution to Danish Prime MinisterAnders Fogh Rasmussen and Valéry Giscardd’Estaing, President of the Convention on theFuture of Europe.

British youth delegate Zoë Waterman said: “Thetwo weeks in Denmark were a huge learningexperience for all involved, as well as a lot of funand the foundation of many firm friendships. For

me, the most eye-opening aspect of the event wasthe participation of those countries who arecurrently applying to jointhe EU. They made me realize how westernmy views are and forced me to re-evaluate them.”

Giampiero Alhadeff,Secretary-General ofSolidar, an internationalalliance of NGOs, said:“There is much talk of ademocratic deficitseparating the European Union from its citizens.The unsurprising thing about the 1,000 youngpeople involved in this project is how committedthey are to a Europe that is dedicated to humanrights, tolerance and social inclusiveness. For them,there is no contradiction between an economicallystrong Europe and one that stands up for socialjustice at home and abroad.”

(For more information about Bridging Europe seewww.weforum.org/bridgingeurope)

Bridging Europe

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EuropeIn Europe, there were signs of increasingscepticism about European integration and theperceived gulf between the European Union’sinstitutions and its citizens.

To help address this discontent and look forward tothe future, the World Economic Forum launched withMonday Morning the Bridging Europe initiative. Thiswas a catalyst for online dialogue between 1,000younger Europeans and some of the EU’s keypoliticians and business leaders. (For furtherinformation visit www.weforum.org/europe)

Russia and Central AsiaCentral Asia, politically and economically significantas the holder of important oil resources, remained

a volatile and unpredictable region. It becameviewed by some authorities as a possible breedingground for extremists.

At the Eurasia Economic Summit 2002 in Almaty,Kazakhstan, 500 business people, politicians,academics and media representatives from across theregion were brought together to discuss how to‘sustain growth in uncertain times.’ (For moreinformation visit www.weforum.org/eurasia)

As poor corporate governance practices continue to dog the Russian economy, the World EconomicForum drafted a corporate code of conductdesigned specifically for the local environment. The issue was progressed at both the Russia Meetingin Moscow 2001 and at the Annual Meeting 2002.

Young people discuss the way to a better Europe,as part of the Bridging Europe initiative

The Global Health Initiative is fostering greater private sector engagement in the fight againstHIV/AIDS, TB and malaria. It is driven by a partnership of the World Economic Forum, WHOand UNAIDS.

Photo credit: UNAIDS/G. Pirozzi

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Task forces and initiatives

Furtheringour mission

The World Economic Forum’s global, multi-sectormembership provides a unique platform for thediscussion, coordination and development ofpractical projects dedicated to improving the stateof the world. The World Economic Forum hasestablished a number of task forces whoseinitiatives form an integral part of this mission. (See www.weforum.org/initiatives)

Global Competitiveness ProgrammeThe World Economic Forum’s GlobalCompetitiveness Programme expanded during2001/02, with the introduction of workshops tocomplement its expert reports.

The Global Competitiveness Programme aims toact as a catalyst for economic policy change, byassisting governments in identifying impediments to growth and in designing strategies to achievesustained economic progress. One recentcollaboration has been with Colombia, whoseeconomic reform programme is based on the WorldEconomic Forum's competitiveness approach.

The programme also serves as an integratorbetween members and key policy-makers,contributing to the creation of an economicframework that supports private investment,entrepreneurship and social progress. Its otherobjectives include stimulating public debate oneconomic development and global stewardship,and helping investors develop business strategy bymonitoring and benchmarking national economies.

In 2001/2002, the programme produced thefollowing reports: • The Global Information Technology Report

2001-2002: Readiness for the Networked World• The European Competitiveness and Transition

Report 2001-2002• Environmental Performance Measurement:

The Global Report 2001-2002• The Latin American Competitiveness Report

2001-2002

In addition, the World Economic Forum held arange of regional and global workshops whereleaders met to discuss issues critical to nationalcompetitiveness. These workshops weresupported by presentations around the world tonational governments keen to strengthen theireconomies. (For further information seewww.weforum.org/gcp)

“The gap in health outcomes is growing dramatically… AIDS

and TB are really phenomena of the poor world: when I say

poor world, of course, I mean the majority of the world.”

Bill Gates, Chairman and Chief Software Architect,

Microsoft Corporation, Annual Meeting 2002

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Task forces and initiatives

Environmental Sustainability IndexThe Environmental Sustainability Index is a measure of overall progress towards environmental sustainability.

The index was first developed in 2000 by the World Economic Forum’s Global Leaders forTomorrow Environment Task Force, the Yale Centerfor Environmental Law and Policy, and the ColumbiaUniversity Center for International Earth ScienceInformation Network.

It takes account of both a country’s existingenvironmental capabilities and performance and its future capacity to manage environmentalchallenges. The index offers a benchmark fornational environmental comparison and provides thecritical information required for environmentaldecision-making.

This year, the index’s scope was broadened. Anincrease in the number of ranked countries from 122to 142 made it more comprehensive; the crucialmeasure of greenhouse gas emissions wasemphasized, and measuring techniques wereimproved with the introduction of new data sets andadvanced data importing methods.

A pilot Environmental Performance Index was alsolaunched. This ranks countries more precisely byusing specific environmental criteria and by indicatingimprovement rates.

In the 2002 index, Finland was ranked first forenvironmental sustainability. This followed its successin minimizing air and water pollution, its managementof environmental problems and its low levels ofgreenhouse gas emissions. (For further informationvisit www.weforum.org/esi)

Global Digital Divide InitiativeThe Global Digital Divide Initiative builds partnershipsbetween the public and private sectors to help lessdeveloped countries make use of information andcommunication technology (ICT).

The digital divide is about more than just direct accessto technology. It also concerns a nation’s computerliteracy and how effectively different countries use IT forsocial and economic development.

At the Annual Meeting 2002 in New York, the initiativetask force launched a CEO Charter for DigitalDevelopment. CEO signatories agreed to try to targetat least 20% of their annual corporate citizenshipand/or philanthropy budgets towards concrete andsustainable actions to promote social, economic andeducational progress in developing countries anddisadvantaged communities, through information andcommunication technologies.

Initial signatories included participants from Taiwan,Egypt, the US, Jordan, the Philippines, South Africa,Malaysia, the United Arab Emirates, the RussianFederation, Switzerland, Spain and France.

In 2001/02, the task force carried out an internationalsurvey and evaluation of digital divide-related projects.It also forged partnerships between digital divide teamsand the wider World Economic Forum, to shareknowledge about successful projects.

This activity helped match companies seeking toinvest in education-related activities with projectsrequiring support. During 2001, World EconomicForum strategic partnerships helped the followingprojects to improve their education-relatedactivities: the Committee for Democracy inInformation (Brazil), Educar Chile (Chile), ITrain(Canada), and US-based Schools Online, WorldComputer Exchange and World Links.

There were several other key outcomes. Forinstance, a joint Southern African DevelopmentCommunity/World Economic Forum workshophelped to share perspectives on e-readiness. Inanother example, in regional pilot studies in SouthAfrica and Brazil, local teaching bodies andgovernment groups worked with global ITcompanies to develop IT education.

The initiative began in 2000 with a one-yearmandate but was so successful that its remit wasexpanded. The task force will now be refocused at the Annual Meeting 2003 to assess the socialinvestment required to ensure its continuingsuccess. (For further information visitwww.weforum.org/digitaldivide)

“Today, if you try to ‘greenwash’ as a multinational

corporation, you will wake up sorry one morning.”

Björn Stigson, President, World Business Council for Sustainable

Development, Annual Meeting 2002

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The Jordanian Government intends to introduceinformation technology as an important componentof both primary and secondary education. Toachieve this it wishes to equip 3,183 schools withcomputer laboratories.

The World Economic Forum is supporting thisprogramme through its Global Digital Divide Initiative.Although Jordan has been successful in securingloans for the project, it still needs to equip more than1,000 schools and provide basic computer literacytraining for almost 57,000 teachers.

The World Economic Forum is working with theindependent, non-profit organization World Linksand private sector partners to provide computerequipment and software for 500 Jordanianschools. World Economic Forum members are alsosupplying financial resources for teacher training.

This project is an essential part of the JordanianGovernment’s long-term goal of becoming a globalhub of information technology.

Bridging the gap betweenthose who have informationand communicationstechnology and those whohave not is an importantgoal of the World EconomicForum. This technology canenable a better life formillions by enablingcountries to overcomebarriers to development.

The Global Digital Divide Initiative is bringingtechnology to people across the developing world, including Brazil, Ghana, Mexico, SouthAfrica and Vietnam.

Global Health InitiativeThe Global Health Initiative is designed to fostergreater private sector engagement in the globalbattle against HIV/AIDS, tuberculosis (TB) andmalaria. These diseases are regarded as the rootcauses for the failure of developing countries toincrease their economic and social well-being.

The initiative is driven by a partnership between theWorld Economic Forum's member companies, theWorld Health Organization and the Joint UnitedNations Programme on HIV/AIDS (UNAIDS).

It has four major strategies:• Promoting the business case to unite global

industry in the fight against HIV/AIDS, TB and malaria

• Developing resources to promote good practicewithin workforces and communities

• Identifying resource gaps and correspondingpartnership/philanthropic opportunities

• Expanding corporate advocacy

As a result of these aims, many companies have strengthened their internal policies andprogrammes, offering anti-AIDS drugs to workersand their families. This potentially doubles thenumber of people in Africa with access to life-savingmedicines. (See www.weforum.org/globalhealth)

Encouraging progress has been made during2001/02, including: • The production of the initiative’s executive

statement. This corporate call to action wassigned by 30 companies and was accompaniedby a resource paper comprising the findings andtools developed in 2001

• The World Economic Forum’s participation as aprivate sector representative on the TransitionalWorking Group, the design and developmentbody of the Global Fund to Fight AIDS, TB andMalaria. The initiative is now the focal point forprivate sector interaction with the Global Fund

Global Digital Divide Initiative

Bridging the digital divide

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Task forces and initiatives

Global Agenda AtelierThe World Economic Forum launched the GlobalAgenda Atelier at its Annual Meeting 2002. Theprogramme aims to help members systematicallyanticipate and assess risks or opportunities emergingfrom political, social and economic trends.

The programme focuses on global themes such as re-evaluating leadership, reducing poverty andsharing values. It draws on the insight of global leadersto develop an overall understanding of the issues andpossible solutions. (For more details seewww.weforum.org/atelier)

Agricultural Trade Task ForceThe task force was established in 2001 to driveforward equitable reform of global agricultural trade,making a substantial contribution to the alleviation ofpoverty in the developing world.

During the World Economic Forum's Annual Meeting2002, the task force of companies and anti-povertyNGOs issued Recommendations for Action onTrade. This included key guidelines for equitablereform of the global agricultural trade system. It alsoadvocated a move towards a more open and fair tradesystem through the removal of market-distorting exportsubsidies, export credits, direct payments and marketaccess restrictions. (For further information visitwww.weforum.org/agriculturaltrade)

Pension System Readiness InitiativeThe Pension System Readiness Initiative aims toassess the retirement system readiness of membercountries of the Organization for EconomicCooperation and Development.

Increased life expectancy, the impending retirement ofthe baby boom generation and a falling retirement ageare creating unsustainable pressures on public andprivate pension systems. Although this is a globalproblem, many countries are approaching the issues ofageing and pension reform in an isolated manner.

The task force aims to create a cross-countrycomparison of policy performance together with abroader discussion about the effect the changes couldhave on the world economy.

The initiative will bring together leaders from thefinancial services and employment industries and otherstakeholders, such as senior citizen groups, labourunions and international organizations.

Global Governance InitiativeThe World Economic Forum’s Global GovernanceInitiative assesses the efforts of governments, inter-governmental organizations, and non-state bodies toaddress global problems such as poverty, disease andarmed conflict. Its aim is to bring the internationalcommunity to greater accountability to the MillenniumSummit Declaration’s goals, in particular, on how mucheffort and cooperation has been given.

The initiative, which was conceived in 2001, willproduce regular reports that rate theseorganizations on their effort and willingness toengage in partnerships. These will be used to helpstimulate the interest of the media and policy-makers and to put pressure on governments totake action and fulfil their promises.

The Global Corporate Citizenship InitiativeThe World Economic Forum believes that businessshould be fully recognized as a key part of society andmust act proactively in the global public interest.

Business is now increasingly realizing that it has araison d’être in society that extends beyondbehaving responsibly. More and more, companiesare accepting that they must address the globalissues of our time if they are to remain successfuland sustainable.

In July 2001, the World Economic Forum launched theGlobal Corporate Citizenship Initiative: in 2001/02, itcontinued to act as a catalyst for corporate citizenship.

“If an organization perceives that the CEO and top

management are tweaking things in the company for

their own comfort...I guarantee you that it will roll

downhill like a big snowball and everyone will tweak

things for their own comfort.”

Roger Enrico, Chairman and CEO, PepsiCo, Annual Meeting 2002

Earthquakes, famine and other major disasters bringmisery to many thousands of people every year.

In many situations, humanitarian tragedies aremade worse by the fact that aid donated bybusiness, charities and the public cannot getthrough to those who need it most. The WorldEconomic Forum’s Disaster Response Networkwas launched to make it easier for companies tochannel aid and expert help to strickencommunities in the early response phase ofemergencies. It also ensures that corporatedonations are delivered in a coordinated andeffective manner to humanitarian organizations.

The network was established at the WorldEconomic Forum’s Annual Meeting 2002 in NewYork, after the Gujarat earthquake in India. Afinancial strategy was developed, with membercompanies committing to contribute over US$ 100,000 to the launch.

The initial aims are to develop a circle of regionalbusiness leaders who are willing to take actionwhen disaster strikes, and to create a clearinghouse to ensure engineering and transportationcompany experts reach particular areas of need.Its main goals are to develop regional groups inMexico and India, providing staff training andcreating a knowledge centre for organizationsinvolved in disaster relief.

The project is also working to overcome legal,contractual and regulatory hurdles that slow theprogress of relief operations and to ensure trainingis available for member company employees willingto volunteer to help after a disaster. (For furtherinformation visit www.weforum.org/drn)

Disaster Response Network

The aftermath of the Gujarat earthquake, whichprompted the launch of the Disaster Response Network

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The Global Corporate Citizenship Initiative aims tohelp business leaders develop systems to integratecorporate citizenship principles into their businessstrategies. The 30-plus inaugural membercompanies came from a diverse range of industriesand regions and included UBS AG, The Coca-ColaCompany, McDonald’s Corporation and Phillips-VanHeusen Corporation.

At the Annual Meeting 2002, the initiative’s memberslaunched a landmark statement: ‘Global CorporateCitizenship: the Leadership Challenge for CEOs andBoards’. This emphasizes that corporate citizenshipis first and foremost about the way companies runtheir businesses. Moving beyond philanthropy,responsible business principles must be integratedinto core business principles and practices.

The statement includes a practical template forleadership, which can be used by CEOs and boardmembers to translate these principles into practicewithin their organizations. In drawing up the statement,members were assisted by academics and pro-corporate citizenship organizations, with the Prince ofWales International Business Leaders Forum playing asignificant role.

The urgent need for global corporate citizenship wasalso promoted at the World Economic Forum’sregional economic summits in Europe and Africa. (Seewww.weforum.org/corporatecitizenship)

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The World Economic Forum's Global Competitiveness Report 2001 ranked the comparativestrengths and weaknesses of 75 national economies. It found that Finland had the mostcompetitive economy.

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The World Economic Forum is a business-centredorganization, which acts as an interface with allstakeholders in civil society at large. Our membersand partners represent all sectors and regions ofthe global community. The World Economic Forumdoes not make public or private statements in thename of its members.

MembersThe World Economic Forum’s membership isprimarily drawn from the world’s 1,000 leadingglobal companies. However, 35% of themembership is reserved for companies fromdeveloping countries and those which arecorporate or technological trendsetters.

Membership criteria are strict and forward-lookingto ensure that the businesses chosen arerepresentative of the evolving global economy andcommitted to the mission of the World EconomicForum. Our members represent the top companieswithin their industry and/or country; play a leadingrole in shaping the future of their industry and/orregion; engage in activities with a global dimension;and enjoy a healthy growth and reputation.

During 2001/02 the following companies wereaccepted as members of the World Economic Forum:

Akamai Technologies, Alticor Inc., American ExpressCompany, AstraZeneca Plc, Avaya Inc., Aviva Plc,Azizler Holding AS, Banca Nazionale del Lavoro SpA(BNL), BEA Systems Inc., Becton Dickinson andCompany, Böhringer Ingelheim GmbH, Bristol-MyersSquibb Company, Cathay Pacific Airways Ltd,

Centerpulse Ltd, Central Japan Railway Company,China Hainan Airlines Co. Ltd, Clifford Chance, ClubMéditerranée, Commerce One Inc., Dassault FalconJet Corp., Depository, Trust & Clearing Corporation(DTCC), Diageo Plc, Dogus Holding AS, DongwonSecurities Co. Ltd, Economic Development Board,EMI Group Plc, eSpeed Inc., Federal-MogulCorporation, Fedex Corporation, Ferrovie Dello StatoSpA, Finmeccanica SpA, Flextronics International,Google Inc., Government of Andhra Pradesh, GreyGlobal Group Inc., Groove Networks Inc., Grupo P.I.Mabe SA de CV, Gulf International Bank BSC (GIB),Home Box Office, Human Genome Sciences Inc.,IBS Group, ING Group, Interpublic Group ofCompanies Inc., Intertex Holding GmbH, IntierAutomotive Inc, IPP Limited, J.D. Power andAssociates, Jet Airways (India) Pvt Limited, KTBNetwork, Kuala Lumpur Stock Exchange (KLSE),MIH Group, Moody's Corporation, Mori BuildingCompany Limited, Murugappa Group, NationalBank of Dubai PJSC, National Investment Council,Novolipetsk Metallurgical Combine (NLMK), NTLInc., Omnicom Group Inc., Oxygen Media Inc., PalmInc., Panama Canal Authority, Pequot CapitalManagement, Inc., Peregrine Systems Inc., PKNOrlen SA, Ports Customs & Free Zone Corporation,Random House, Reader's Digest Association Inc.,Ripplewood Holdings LLC, RVC-The GreenhouseFund, RWE AG, Saudi Arabian General InvestmentAuthority, Seiyo Food Systems, SK Telecom Co.,Sonangol E.P., Superfos, Sybase Inc., SynopsysInc., TDC A/S, Thomas Cook AG, TimkenCompany, TSX Group, Vattenfall, VIA TechnologiesInc., Viking Global Investors LP, Vulcan Inc. andZenith International Bank Ltd.

A business-centredforum

Our members and partners

PartnersStrategic Partners are select member companieswho strongly support the World Economic Forum'scommitment to improving the state of the world.They are actively involved in the World EconomicForum’s endeavours at global, regional andindustry levels. They contribute their expertise andresources at the highest level in order to advanceworldwide economic and social progress.

As of 30 June 2002, our strategic partners were:

ABB, Accel Partners, Accenture, A.T. Kearney, Audi,Barco, The Boeing Company, Booz Allen Hamilton,BP, Cisco Systems, The Coca-Cola Company,Compaq, Deloitte Touche Tohmatsu, DHLWorldwide Express, Ernst & Young, General AtlanticPartners, Goldman Sachs, J. & W. Seligman & Co.,IBM Corporation, KPMG, Kudelski Group,McKinsey, Merck & Co. Inc., Merrill Lynch, MicrosoftCorp., Nestlé, Pfizer, PricewaterhouseCoopers,Reuters, Siemens, Suez, Sun Microsystems, UBS,Vivendi Universal and Volkswagen.

Membership DevelopmentOur members are at the heart of the WorldEconomic Forum and include 1,000 of the world'sforemost companies. Members encompass notonly the most global companies in the world, butalso regional market leaders and smallercompanies shaping the future of their industries.

The selection criteria for inclusion are quite strict.Over the past year the World Economic Forum hasnot only welcomed almost 100 new companiesinto the organization but has also declined torenew membership for a number of companieswho no longer meet the requisite criteria.

We are proud to report that, despite economicpressures from a difficult global economy, theWorld Economic Forum has maintained its numberof active members, which underlines its ability tomeet their needs and address issues of concern.

“A knowledge-based economy without an open society

is impossible…You need the creativity of free people –

citizens – to run the heart of a productive knowledge-

based economy.”

Joschka Fischer, German Federal Vice-Chancellor and Minister of Foreign Affairs,

Annual Meeting 2002

18

The business co-chairmen of the Annual Meeting 2002,clockwise, from top left: Raymond V. Gilmartin,Chairman, President and CEO, Merck and Co., NiallFitzgerald, Chairman, Unilever; Yotaro Kobayashi,Chairman, Keizai Doyukai, Japan; Roberto Civita,Chairman and CEO, The Abril Group

Our communities and constituencies

CommunitiesA key part of World Economic Forum activity is thecreation of distinctive communities of member andpartner companies, creating smaller, more informalopportunities for interaction.

The International Business Council The International Business Council (IBC) wasestablished by the Foundation Board in 2001/02 toreplace the Council of the World Economic Forum.

The IBC is an interactive community of concernedand committed business leaders made up of 100highly respected and influential chief executives. Itidentifies and addresses globally relevant businessissues and develops practical solutions. It also actsas an advisory body providing intellectualstewardship to the World Economic Forum.

The IBC meets twice a year. It followed its inauguralmeeting, at the February Annual Meeting 2002 inNew York, with an August meeting in Geneva.

IBC members are nominated by a membershipcommittee, based on clear criteria and guidelines,with selection based on the qualities of theindividuals and their companies. Councilmembership is limited to two three-year teams,other than in very exceptional cases when it isextended to three three-year terms.

Industry GovernorsAnother significant community is the WorldEconomic Forum's Industry Governors. These are agroup of CEOs selected from influential companieswithin each of our designated industry groupings.They engage with the World Economic Forum toidentify, discuss and address issues of primaryimportance to their sectors and provide intellectualstewardship to the Forum's efforts, such asindustry-specific initiatives and task forces andindustry-targeted sessions in meetings and events.

Each year, during the last two days of the AnnualMeeting in Davos, each of these groups assemble for a private, off-the-record discussion to address non-competitive issues of mutualimportance and interest. Many of the WorldEconomic Forum's most impactful initiatives,including the Global Digital Divide Initiative and theDisaster Relief Network, stemmed directly fromthese discussions.

Engagingleaders

“We may come from different countries but, at this

moment in the world economy, we all speak the same

language: the language of change.”

Vicente Fox, President of Mexico, Annual Meeting 2002

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Our communities and constituencies

ConstituenciesTo complement the knowledge of members andpartners, the World Economic Forum engages awide range of individuals and organizations from allsectors of society, whom it includes in its activitiesas constituents.

Advisory GroupsIn 2001/02, we created advisory groups to enableother key stakeholders of the global economy toengage in and help shape the World EconomicForum's activities. The labour union, non-governmental organization, academic and religiousleaders’ groups involved are made up of leadingfigures from these segments of global society. Theyprovide advice and input into the development ofthe World Economic Forum's meetings,communities and initiatives.

These consultative arrangements are a vital part ofthe World Economic Forum's commitment toproviding a non-partisan, multistakeholder platformfor dialogue and partnership. In addition, to maximizethe relevance of meetings and initiatives for policy-makers, we consult extensively with leaders frominternational organizations and governments.

Forum FellowsThe World Economic Forum relies upon a continuouslyevolving group of about 300 experts and scientistsfrom all fields of knowledge. These people are at thecutting edge of their disciplines and are considered asleaders by their peers. We collaborate closely with thisfaculty group to design the programmes of oursummits and meetings, as well as to develop thevarious initiatives and task forces we undertake with our members and partners.

Global Leaders for TomorrowThe Global Leaders for Tomorrow (GLT) communityrepresents the new generation of leaders. The GLTsare young but proven leaders from business, politics,the arts, the media and civil society with ademonstrated commitment to addressing issuesbeyond their immediate professional interest.

The third annual GLT Summit, held in Geneva inthe late summer of 2001, provided an opportunityto design the Global Agenda for 2010. In theAnnual Meeting 2002, in New York, GLTsparticipated in the Special GLT Private Programme,during which we held a breakfast with Bill andHillary Clinton and a private session with USSecretary of State Colin Powell.

GLT programmes also form part of the regionalsummits. In the last USA Meeting, the GLTs discussedthe US role in the Middle East. In the Africa EconomicSummit 2002 in Durban there was a joint NGO-GLTdiscussion on the New Partnership for Africa'sDevelopment (NEPAD).

“Financial ratings have become kind of second nature in the

business world. We must further explore the idea of social

and environment ratings.”

François Roussely, President and CEO, Electricité de France

A World Economic Forum director (far right), with twoGlobal Leaders for Tomorrow

Javier Hurtado Mercado* has fostered a shift inattitudes in his native Bolivia: transformingpeasants into empowered micro-entrepreneurs.

Hurtado’s company,Irupana, makes organicproducts, such as coffee,honey, marmalade, driedfruit and cereals. The goods are soldthroughout Bolivia and are now being exported abroad.

Irupana buys direct from 1,700 family farms acrossBolivia. By cutting out the middleman andconcentrating on premium-priced organic foods,

the company is able to pay its supplier farmers 25% more than market rates. Irupana encouragesthe farmers to keep part of their harvest, soimproving their family diet.

By integrating poor communities into the Bolivianagriculture value chain, Irupana is enabling peopleformerly dependent on aid handouts to becomeself-respecting businesspeople.

*Hurtado was one of a group of 60 outstandingindividuals appointed in 2001/02 to the SchwabFoundation for Social Entrepreneurship network.

Social Entrepreneurship

Javier Hurtado Mercado

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Technology PioneersThe Technology Pioneers programme was formedin 2000 to provide new perspectives on thetechnology horizon.

Each year, the World Economic Forum selects upto 100 Technology Pioneers, who are chiefexecutives of companies that are developing andapplying the most innovative and transformationaltechnologies. Sixty-nine Technology Pioneers wereselected for the class of 2002, representingcompanies engaged in cutting-edge work ininformation technology, biotechnology andrenewable energy.

At the Annual Meeting 2002 in New York,Technology Pioneers participated in a privateprogramme designed to explore synergies amongand between different technology sectors. In aspecially designed workshop, TechnologyPioneers, along with Governors of the informationtechnology, health and telecommunicationsindustries, discussed ways of applying innovativetechnology to further economic and socialdevelopment in developing countries. At the USAMeeting 2002, Technology Pioneers met privatelywith executives in the technology industry todiscuss how to maintain an environment open toinnovation and entrepreneurial talent in a toughand cynical economic climate.

Social EntrepreneursThe World Economic Forum is working closelywith the Schwab Foundation for SocialEntrepreneurship, which supports enterprisesfounded primarily for the public good.

The Schwab Foundation celebrates individualswho identify and apply practical solutions to socialproblems, by embracing business principles in an innovative and resourceful way. It plays adistinct but complementary role to the WorldEconomic Forum.

Each year, the Schwab Foundation selects anumber of outstanding social entrepreneurs. Theseindividuals are invited to the World EconomicForum’s Annual Meeting and its regional summits.These opportunities provide the socialentrepreneurs with both credibility and access topotential sources of financial and in-kind support.

Teamwork behind the scenes at the World Economic Forum.

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Our people

The reputation of the World Economic Forumdepends entirely on its values, insight, knowledgeand people. Its community of highly committedpeople provides quality expertise and support tomembers and constituents.

The team at the World Economic Forum is trulyinternational. In the year under review, our peoplerepresented 26 nationalities. This range of culturalexperience is clearly important for us to be able tosupport our global members and the participantsat our events around the world.

The World Economic Forum is a youthfulorganization with a current average age of 35years. That said, we have always believed itimportant to balance the fresh thinking that youthbrings with the insights that come from longexperience in world affairs. This blend ofexperience can clearly be seen by a breakdown ofemployee ages for the year under report. Of the171 people who work for the World EconomicForum, two-thirds are university graduates.

The remuneration policy in 2001/02 continued tocombine the World Economic Forum’s status as anot-for-profit foundation with the need to attractthe best people.

Forum staff are encouraged to engage in externalsocial and cultural activities provided there is noconflict of interest.

A trulyinternationalteam

Nationality Numbers

American 17Armenian 1Austrian 2Belgian 1British 5Canadian 5Chinese 1Colombian 1Costa Rican 1Danish 1Dutch 2Finnish 1French 19German 13Irish 1Italian 2Jordanian 1Malagasy 1Malaysian 1Mexican 1New Zealander 1Norwegian 3Spanish 3Swedish 2Swiss 84Thai 1

Nationalities 26

Age Group Numbers

20 to 24 1325 to 29 4630 to 34 4635 to 39 2140 to 44 1345 to 49 1050 to 54 755 to 59 860 to 62 563 to 65 165 or older 1

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Our organization

The Managing BoardThe Managing Board acts as the executive body of the Foundation Board. It ensures activities andservices fulfil the mission of the World EconomicForum and represents it in its dealings with outside parties. The Managing Board members for the2002/03‡ are as follows:

Klaus SchwabPresident and Founder, Aged 64Qualifications: Swiss Federal Institute of Technologyand the Universities of Fribourg and Harvard. Degreesinclude Doctorates in Mechanical Engineering and inEconomics (summa cum laude). Taught businesspolicy since 1969 and has been a Professor at theUniversity of Geneva since 1972. Author of severalbooks, the yearly Global Competitiveness Report(since 1979) and many other publications. Foundedthe World Economic Forum in 1971 as a not-for-profitfoundation building it into the foremost globalpartnership of business, political, intellectual and otherleaders of society committed to improving the state ofthe world. Recipient of numerous academic andnational honours for initiatives undertaken in the spiritof entrepreneurship in the global public interest and forpeace and reconciliation efforts in several regions.

José María FigueresManaging Director, Aged 48Qualifications: Bachelor Degree in Engineering in 1979.Joined the United States Military Academy (USMA) atWest Point in 1991 followed by MPA, Kennedy Schoolof Public Administration, Harvard University. Positionsheld: General Manager, Fibers of Central America,1980-84. President of the San Cristobal AgroindustrialGroup from 1984-87. Minister of Foreign Trade forCosta Rica, 1987-88, becoming the Minister ofAgriculture from 1988-90 and President of Costa Ricafrom 1994-98. Joined the World Economic Forum in2000 as Managing Director. Additional posts held:President of the Board of Leadership in Environmentand Development (LEAD), Member of the Board ofDirectors: World Resources Institute (WRI), StockholmEnvironment Institute (SEI).

Frédéric SicreManaging Director, Aged 38Qualifications: BA in Literature, Villanova University,Philadelphia, Pennsylvania, USA. Positions held:managing a communication centre within the NATOorganization, Germany. Programmer, NewsReporter for Radio Geneva Information and KTFMradio stations, 1982-84. Joined the WorldEconomic Forum in 1989. In 2000, he becameManaging Director with direct responsibility for theCentre for Regional Strategies.

The 2002/03 World Economic Forum Managing Board.From right, José María Figueres, Klaus Schwab, FrédéricSicre, Rick Samans, André Schneider and Michel Ogrizek

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Rick SamansDirector, Global Issues, Aged 44Qualifications: BA in Economics and French from TuftsUniversity and a Masters in International Affairs fromColumbia University. Positions held: Corporate LendingOfficer, Credit Lyonnais USA, New York from 1981-84.Legislative Assistant to a member of the HouseCommittee on Ways and Means from 1985-88.Professional Staff Member and Senior LegislativeAssistant to the Chairman, Senate BankingCommittee; International Affairs Fellow, Council onForeign Relations, London and Washington DC from1988-91. Associate Director and Staff Director for theSubcouncil on Capital Allocation, CompetitivenessPolicy Council, 1993-96. Economic Policy Adviser tothe Senate Minority Leader from 1996-99. SpecialAssistant to the President for International EconomicPolicy, USA, 1999-2001. Joined the World EconomicForum in 2001 as Director, Global Issues and as anAssociate Member of the Managing Board.

André SchneiderDirector, Resources and Knowledge Management,Aged 43 Qualifications: Classical Orchestra Musician; Diploma,Richard Strauss Konservatorium, Munich. PhD inComputer Science, University of Geneva. Positionsheld: the Philharmonic Orchestra of Berlin; theStaatsheater Kassel; the Symphony Orchestra of theRadio Saarland; the Lucerne International FestivalOrchestra. Researcher in parallel computers for theEuropean Community; various positions held with IBM,including: Product Developer; Consultant and Principal,IBM Consulting Group; Consultant for variouscompanies and organizations; Speaker on IT-relatedtopics. Joined the World Economic Forum in 1998,appointed Director of Knowledge Management and anAssociate Member of the Managing Board in 2000.

Michel Ogrizek*Director, Communications, Aged 55Qualifications: Medical Doctor, University of Paris,1974. Positions held: Chief Medical Officer at theFrench Ministry of Cooperation from 1975-82.Research Associate in the Department of CulturalAnthropology and post-doctoral studies at Berkeley,1982-83. Medical and Public Affairs Director, AfricaRegion and Medical Director, Canada, at WarnerLambert from 1983-87. Médecins Sans Frontièrestrainer. From 1987-91, Director, Burson-Marsteller,France. President and CEO, Hill & Knowlton, France,and Head, Eurosciences, from 1991-95. From 1995-97, President and CEO for Europe and Boardmember, Edelman Public Relations Group. GlobalHead of Corporate Relations, Unilever from 1997-2000. Global Head, Marketing & Communications andManaging Director, UBS Warburg from 2000-02.Joined the World Economic Forum in mid-2002 asDirector of Communications and as an AssociateMember of the Managing Board.

‡During the year 2001/02, Donna Redel (ManagingDirector) and Charles McLean (Director ofCommunications) left the Managing Board.

*Joined the Managing Board in mid-2002.

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Our organization

Corporate GovernanceThe organizational structure is permanently underreview in our continuous effort to ensure that weare responsive to the evolution of the world andare meeting the needs of our stakeholders.

The Foundation BoardThe Foundation Board acts as the guardian of theWorld Economic Forum's mission, values and brand,inspiring business and public confidence through anexemplary standard of governance. This includes:managing the statutes of the World Economic Forumand its institutions; defining the powers of theCommittees and of the Managing Board; appointingnew members; reviewing fund applications; anddetermining and monitoring the execution of theWorld Economic Forum’s strategies.

The Board comprises 15-24 eminent individualsfrom business, politics, academia and civil society,each serving a three-year term. The membershipcriteria include integrity, global vision, leadershipexperience and participation in world affairs.

The Foundation Board members for the year2002/03* are:

• Klaus Schwab, President of the Foundation Board

• William I.M. Turner, Chairman and CEO, ExsultateInc., Canada; Vice-Chairman of the Foundation Board

• Josef Ackermann+, Spokesman of the Board, andChairman of the Group Executive Committee ofDeutsche Bank AG, Germany; Vice Chairman of theFoundation Board

• Kurt Alig, Chairman, Arcadia Treuhand AG,Switzerland; Secretary of the Foundation Board

• Peter Brabeck-Letmathe+, Vice-Chairman and CEO,Nestlé SA, Switzerland

• Lord Carey of Clifton+, Former Archbishop ofCanterbury, United Kingdom

• Flavio Cotti, Former President of Switzerland

• Michael S. Dell, Chairman and CEO, Dell ComputerCorporation, USA

• Niall FitzGerald+, Chairman, Unilever Plc, United Kingdom

• Rajat Gupta, Managing Director, Worldwide,McKinsey & Company Inc., USA

• Nobuyuki Idei, Chairman and CEO, SonyCorporation, Japan

• Caio Koch-Weser, Secretary of State of Finance, Germany

• Graça Machel+, Chairperson, Foundation forCommunity Development, Mozambique

• Henry McKinnell+, Chairman and CEO, Pfizer Inc., USA

• Heinrich von Pierer, President and CEO, Siemens AG, Germany

• Peter Sutherland, Chairman of Goldman SachsInternational; Chairman of British PetroleumCompany Plc, United Kingdom

• Ernesto Zedillo+, Director, Yale Center for the Studyof Globalization, USA; Former President of Mexico

“If the big economies slow and the big economies get the

sniffles, the rest of us get pneumonia. There is a need to

pursue growth with the big guys and the small guys.”

Mike Moore, Director-General, World Trade Organization, Annual Meeting 2002

Structuredto meetstakeholders’needs

During the year under report, and at theFoundation Board meeting of 4 November 2002,the following Foundation Board members retireddue to their age or to other reasons: they werePercy Barnevik, Raymond Barre, Ronnie C. Chan,Guy Fontanet, Helmut Maucher, Jean-MarieMessier, Ferdinand Piech and Maurice F. Strong.

The Foundation Board would like to express theirgratitude to all outgoing members. In particular,they would like to give their heartfelt thanks toGuy Fontanet, for his wisdom, dedication andloyalty, and to Raymond Barre and Maurice Strongfor the great contribution they have made to thedevelopment of the World Economic Forum since itwas first created.

+ Appointed on 4 November 2002.

The Committees of the Foundation BoardThe Foundation Board appoints four Committees fromamong its members:• The Executive Committee defines the rules of

procedure of the Foundation Board and representsthe World Economic Forum to third parties.

• The Audit Committee ensures compliance with allfinancial, accounting and control processes.

• The Evaluation and Remuneration Committeerecommends candidates for positions on theManaging Board.

• The Mission Compliance Committee reviewsForum policies, strategies and activities in lightof its mission.

Practice StructureIn 2001/02 the World Economic Forum organized itswork into three integrated practices.

The Centre for the Global AgendaThe Centre for the Global Agenda (CGA) monitors andanalyses global issues to provide content for the WorldEconomic Forum’s annual, regional, country andindustry meetings. It stimulates thinking and dialogueby organizing task forces and other initiatives involvingdifferent regions, intellectual disciplines andstakeholders in the world economy.

The CGA also manages the World EconomicForum’s engagement with its constituencies,including the academic and scientific communities,business trade bodies, international organizations,labour leaders, non-governmental organizations,religious leaders, Technology Pioneers and GlobalLeaders for Tomorrow. (See www.weforum.org/globalagendamonitor)

The Centre for Global IndustriesThe Centre for Global Industries (CGI) handles relationswith the World Economic Forum’s membership. TheCGI is divided into five broad industry groupings, toallow the development of expertise and specialrelationships with members covering: basic industries,communications and technology, consumer goodsand health, financial services and mobility industries.

The Centre for Regional StrategiesThe Centre for Regional Strategies (CRS) providesmembers and constituents with a series ofoutcome-oriented summits in markets of majorstrategic interest. It builds communities of leadersdrawn from business, politics, academia, religion,media and other areas of civil society who sharethe World Economic Forum’s mission.

The regional summits allow members andparticipants to share, face-to-face, information andinsights on key developments and trends of regionalsignificance. They also give the issues an audiencewhich extends to all stakeholders of global society.CRS works closely with both CGA and CGI, withthe regional summits serving as a platform for theWorld Economic Forum’s global initiatives.

PartnershipsThe World Economic Forum also seeks partnershipswith like-minded institutions. It has, for example,NGO consultative status with the Economic andSocial Council of the United Nations and worksclosely with the Prince of Wales InternationalBusiness Leaders Forum and the World BusinessCouncil for Sustainable Development.

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Participants in the Annual Meeting 2002 were each offered a ‘Davos Companion’. This hand-held Compaq iPAQ with wireless LAN allowed them to download e-mails, find informationabout the programme, book places in sessions and transfer digital images.

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Our organization

Information Technology and Knowledge ManagementThe World Economic Forum’s strength lies in itsability to coordinate the unique resources of itsglobal membership and multistakeholderconstituencies. It is dedicated to achieving itsstrategic vision by developing a core of world-classskills and systems that will support its mission.

The World Economic Forum hosts a large numberof virtual communities, which provide extensiveinformation to its partners, members and thegeneral public.

In 2001/02, the World Economic Forumsuccessfully completed a number of initiatives in support of its information technology andknowledge management needs.

These initiatives included:• An enhanced technology platform providing

better tools, such as an integrated eventmanagement and constituent relationship system

• A strengthening of the World Economic Forum’s knowledge hub to provide a morestable IT platform

• Improved security options to protect internaldata and systems

The World Economic Forum further improved itsexternal processes by launching some key projects:• The implementation of a new Internet site

including a content management tool, knowledgenavigator and other facilities, to increaseinteraction between members and partners

• Twenty distinct initiatives for the Annual Meeting2002, including the first-ever wirelessinfrastructure to provide participants with eventinformation and late-breaking news. The solutioncombined kiosks and hand-held computers,helping to keep participants in touch with eachother and the outside world.

Looking to the future, the World Economic Forumaims to build on its stable IT platform with furtherenhancements and an improved knowledgemanagement environment.

Sharingknowledge

“We have to use technology responsibly for the good

of the entire created order.”

Anglican Archbishop Njongonkulu Ndungane, Archbishop of Cape Town,

Annual Meeting 2002

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Sharing knowledge

CommunicationsA Policy of Transparency and OpennessCommunication plays an integral part in achievingour mission. The World Economic Forum can onlybring a finite number of people together at itsevents. Communication enables us to share theinsights and expertise of our members with thewider global community.

The World Economic Forum believes thattransparency is an essential part of goodgovernance. In view of the importance of ouractivities, we must communicate openly andtransparently. This is why we share full informationabout our activities and internal operations with ourstakeholders through our website and printedpublications. We also fully integrate media leadersinto debates at our summits and meetings.

Our strategy of developing relationships with themainstream media, as well as the business press,and the openness of our organization contributedto largely positive press coverage during the year.The Annual Meeting 2002 in New York resulted inparticularly constructive editorial.

In 2001/02, we forged several strategicpartnerships with the media. These includedcollaborations with Time magazine, with which wehave a dedicated partnership around TechnologyPioneers (see www.weforum.org/techpioneers), andNewsweek International, for which we providedtheme ideas, contacts and survey data for four2002 editions. (For further information seewww.weforum.org/media)

Online Access to InformationThe Internet enables us to provide large amounts ofinformation to our stakeholders. In November 2001we relaunched our website. This was an immediatesuccess with hits on the site doubling over theprevious year’s figures. During the peak period ofJanuary 2002 the members’ area of the siteaveraged 500 visits a day.

Dialogue with NGOsWe continued to build communications bridges withnon-governmental organizations and constructiveanti-globalization movements. In many cases weshare common humanitarian goals with theseorganizations, despite having different views onhow to achieve a significant improvement in thestate of the world.

In 2001/02, the World Economic Forum invited keynon-governmental organizations to be involved intask forces, initiatives and public debates. Sixtyglobal NGOs were represented at the AnnualMeeting 2002 including Amnesty International,WWF, Save the Children, Oxfam, Terre desHommes, Transparency International and HumanRights Watch.

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Our mission and strategic visionOur values and principles

Our mission and strategic visionThe World Economic Forum is an independent,

international organization committed to improving the

state of the world.

In aiming to achieve this mission, the World Economic

Forum embraces new challenges by developing initiatives

which support its core principles and values. These are to:

• Provide a collaborative framework for world leaders to

address global issues

• Promote entrepreneurship in the global public interest

• Maintain a non-partisan and independent position

Our Vision

The World Economic Forum will be a leader in identifying

strategic issues and will provide a platform for decision-

makers to effect constructive change.

The World Economic Forum facilitates dialogue between

corporate, political, intellectual and other leaders on

matters of global, regional, corporate and industry

importance. It facilitates discussion, acting as a catalyst

for the development and coordination of key strategic

insights. The World Economic Forum is changing. It is

evolving from a global event provider to becoming a body

that offers a world-class knowledge base and which

identifies strategic issues.

Our Value Proposition

The World Economic Forum aims to facilitate:

• Dialogue between chief executives of world-leading

companies and key stakeholders in global society

• Early identification and definition of issues of

central importance

• Focused engagement enabling global change

The World Economic Forum will play a unique and essential

role in identifying issues on all levels that could affect its

partners, members and global citizens. The World

Economic Forum supports its members and partners in

major aspects of global effort through multistakeholder

collaboration and public/private partnership. Its ability to

provide a neutral ground for discussion is a fundamental

component of its vision and mission.

Any initiative proposed must:

• Conform with the World Economic Forum’s mission of

improving the state of the world

• Act in the interests of its members

• Address an issue of significant global, regional, corporate

or industry importance

• Be unique to the World Economic Forum

• Reflect distinctive competencies within the World

Economic Forum

Our values and principlesThe World Economic Forum’s task is to be a credible,

independent broker, characterized by intellectual integrity,

commitment and strong principles.

The World Economic Forum is guided by a set of

core principles:

• The stakeholder concept: Companies should serve all

stakeholders to form a community of destiny.

• Cooperation not confrontation: World improvement will

occur through joint effort by:

Bonding – defining problems together

Binding – defining joint objectives

Building – defining joint action

• Global entrepreneurship: Creates societal progress.

Economic activities should serve the global public interest.

• Corporate citizenship: Companies must take short and

long-term social and environmental responsibility.

• Globalization: The need to globalize globalization:

Globalization should be supplemented by political and

social measures.

• Global responsibility: Shared values are necessary to

provide a framework for global decision-making.

• Social entrepreneurship: Global cooperation at the

leadership level has to be supplemented by concrete

actions on the ground. Social entrepreneurs are a key

driver for societal transformation and progress.

The World Economic Forum promotes the protection of

the environment and sustainable development, fulfilling a

global environmental stewardship role. It respects

different cultures, cultivating an environment that values

diversity and inclusiveness.

The World Economic Forum strives to be the key builder of

global communities:

• Those fully integrated into the World Economic Forum,

such as members

• Those providing advice, such as the constituency

advisory groups

• Those who have autonomy but share and support the

World Economic Forum’s mission, such as the International

Business Council and the Global Leaders for Tomorrow

As an organization ‘without borders’ at the heart of the

communities it serves, the World Economic Forum

combines a range of approaches to support its mission,

such as seconding employees to members to help them

achieve their goals.

The World Economic Forum promotes learning and

knowledge through group interaction, shared experience and

expertise. It maintains high-level learning communities by:

• Understanding what makes them successful

• Developing and experimenting new technologies that

support virtual interaction and knowledge sharing

• Structuring itself as a best practice learning organization

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Our financialresults

The World Economic Forum’s financial policystates that membership fees should coveroperational costs, that events are funded throughparticipation fees, and that projects are supportedby the income from partnership contracts.

Approximately 5 to 10% of the World EconomicForum’s income each year is saved to strengthenits reserves for new initiatives. This year the surplusadded to Foundation Capital was Sfr. 3,118,445.

The World Economic Forum may acceptdonations, legacies, grants and other contributionsor subsidies that are consistent with its purpose of ‘integrating leaders from business, politics,science and society at large into a community for global action committed to improving the stateof the world and the well-being and prosperity ofhuman society’.

The World Economic Forum makes no payments topolitical personalities, parties or other organizationsand avoids involvement in internal politics.

AuditorsThe World Economic Forum’s financial results areaudited by PricewaterhouseCoopers who examinethe balance sheet and accounts. The annualreport, as well as all institutional documents, aresubmitted to the Swiss Federal Government, whichacts as the supervisory body of the Foundation.

Total Income 1997-2002

1997/ 1998

1998/ 1999

1999/ 2000

2000/ 2001

2001/ 2002

51,8

90,4

52

51,3

06,0

02

61,1

00,6

42

63,8

06,0

52

72,1

95,4

53

figures in Swiss francs

Key figures

Year 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002

Total income* 51,890,452 51,306,002 61,100,642 63,806,052 72,195,453out of which

members’ fees 18,761,000 20,915,531 22,106,920 23,588,125 24,965,367participation fees 26,972,981partnership 18,946,940

Total expenditure 51,047,818 50,380,441 59,416,135 63,556,294 69,077,008out of which

personnel costs 27,097,659office costs 10,642,445activity-related costs 31,336,904

Surplus to beadded to the Foundation capital 842,633 925,560 1,684,507 249,759 3,118,445

Foundation capital 6,136,481 7,062,041 8,746,549 8,996,308 12,114,753

Total staffFull time 73 68 81 125 139out of which are secondedby Forum members 4Part time 26 24 22 22 28

In its continued effort to support the Forum strategy, in 2001 the Forum continued to invest particularlyin its human resources, which was reflected in an increase of personnel costs of 14.96%.

* all key figures in Swiss francs

Contact details:

World Economic Forum,91-93 route de la Capite,CH-1223 Cologny/Geneva,Switzerland

Telephone +41 (0)22 869 1212Fax +41 (0)22 786 2744e-mail: contact@weforum.orgwww.weforum.org

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