Ben & Jerry's has accused its parent company, Unilever, of removing its CEO in a recent legal battle, shedding light on a contentious relationship between the two entities.
Allegations and Legal Battle
In a recent court filing, Ben & Jerry's claimed that Unilever ousted its chief executive, David Stever, due to disagreements regarding the ice cream brand's strong commitment to social and political activism. The lawsuit, currently ongoing in the Southern District of New York, alleges that Unilever sought to stifle Ben & Jerry's activism, which plays a vital role in the brand's identity and customer appeal.
CEO Removal and Legal Proceedings
Unilever's decision to replace CEO David Stever was communicated to Ben & Jerry's Independent Board on March 3, sparking legal actions from the ice cream brand. Ben & Jerry's legal team argued that the removal process of Stever did not adhere to the approved procedures for a chief executive's dismissal. The company motioned for the courts to intervene and ensure Unilever's compliance with the proper CEO appointment and removal protocols.
Response from Unilever
In response to the allegations, Unilever defended its actions by asserting that decisions regarding the appointment, compensation, and removal of Ben & Jerry's CEO are made in consultation with the B&J's Independent Board. The company expressed disappointment over the public disclosure of confidential employee conversations and emphasized the importance of following the agreed-upon processes.
Escalating Tensions and Lawsuits
The strained relationship between Ben & Jerry's and Unilever has intensified in recent years, particularly concerning political issues. Disputes over selling in Israeli settlements and statements related to the Gaza war have further fueled the conflict. Ben & Jerry's, known for its vocal advocacy on social justice issues, views activism as a fundamental aspect of its brand, essential for engaging customers and maintaining brand integrity.
Financial and Reputational Impact
Ben & Jerry's legal team emphasized the financial and reputational harm caused by any attempts to silence the company's social activism. The brand's commitment to progressive ideals, including voting rights and equality, is deeply embedded in its business model and resonates with its customer base.
As the legal battle between Ben & Jerry's and Unilever unfolds, the future of their relationship and the impact on the ice cream brand's social mission remain uncertain.
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By: kbalevic@businessinsider.com (Katie Balevic)
Title: Ben & Jerry’s Accuses Parent Company Unilever of Ousting CEO Over Activism
Sourced From: www.businessinsider.com/ben-and-jerrys-unilever-ousted-ceo-silenced-mission-court-docs-2025-3
Published Date: Wed, 19 Mar 2025 22:36:32 +0000
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