Causes
The cohesive forces among liquid molecules are responsible for the phenomenon of surface tension. In the bulk of the liquid, each molecule is pulled equally in every direction by neighboring liquid molecules, resulting in a net force of zero. The molecules at the surface do not have other molecules on all sides of them and therefore are pulled inwards. This creates some internal pressure and forces liquid surfaces to contract to the minimal area.
Surface tension is responsible for the shape of liquid droplets. Although easily deformed, droplets of water tend to be pulled into a spherical shape by the cohesive forces of the surface layer. In the absence of other forces, including gravity, drops of virtually all liquids would be perfectly spherical. The spherical shape minimizes the necessary "wall tension" of the surface layer according to Laplace's law.
Another way to view surface tension is in terms of energy. A molecule in contact with a neighbor is in a lower state of energy than if it were alone (not in contact with a neighbor). The interior molecules have as many neighbors as they can possibly have, but the boundary molecules are missing neighbors (compared to interior molecules) and therefore have a higher energy. For the liquid to minimize its energy state, the number of higher energy boundary molecules must be minimized. The minimized quantity of boundary molecules results in a minimized surface area.
As a result of surface area minimization, a surface will assume the smoothest shape it can (mathematical proof that "smooth" shapes minimize surface area relies on use of the Euler–Lagrange equation). Since any curvature in the surface shape results in greater area, a higher energy will also result. Consequently the surface will push back against any curvature in much the same way as a ball pushed uphill will push back to minimize its gravitational potential energy.
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