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The 3W Institute, usually shortened to 3W, was an organisation founded by Dr. Skarosa, who believed that the dead remained in contact with their bodies. Since he concluded that the dead continued to feel what was happening to their bodies, Skarosa established 3W mausoleums all over the world dedicated to caring for the bodies of the deceased. At some point Skarosa died, and leadership was either passed to, or usurped by, Missy.
The term "3W" referred to the three words "World Wide Web"; the implication being that the Matrix Data Slice acts as some form of online living space for the consciousnesses being held there. According to Dr. Chang; Dr. Skarosa also believed that the words "Don't cremate me" were the three words being spoken by the dead but the validity of this has been called into question seeing as how 3W was a setup by The Master.
The significance of the words in the name 3W was that, in that realm, the dead were conscious and aware of their surroundings, obviously not being able to communicate to the outside world. 3W was founded to prevent this, after the external discovery of its existence via running white noise through a universal translator and revealing the three words. (TV: Dark Water)