Ben & Jerry’s alleges Unilever fired its CEO over activism : NPR

Ben & Jerry’s is accusing dad or mum firm Unilever of ousting its CEO in retaliation for its social media activism, the most recent escalation in a long-running battle over the ice cream maker’s independence.

The Vermont-based firm and 5 administrators of its unbiased board initially sued Unilever and its U.S. subsidiary, Conopco, in federal court docket in November 2024, alleging the businesses had silenced its makes an attempt to indicate public assist for Palestinian refugees, amongst different causes.

Ben & Jerry’s stated these actions violate its 2000 merger agreement, which created the unbiased board and gave it “main accountability for Social Mission Priorities and the Important Integrity of the Model.” The corporate has a well-documented history of outspoken advocacy, supporting causes from racial and local weather justice to marketing campaign finance reform via what it calls its “progressive, nonpartisan social mission.”

In an amended complaint filed within the Southern District of New York on Tuesday, Ben & Jerry’s accused Unilever of continuous to censor its social media posts — together with about Black Historical past Month and free speech — and waging a “marketing campaign {of professional} reprisals” culminating within the abrupt elimination of its CEO.

“Opposite to their obligations beneath Part 6.14, Unilever has repeatedly threatened Ben & Jerry’s personnel, together with CEO David Stever, ought to they fail to adjust to Unilever’s efforts to silence the Social Mission,” it reads. “This month … Unilever adopted via with their threats.”

Ben & Jerry’s stated Unilever executives introduced Stever’s elimination on March 3, for causes unrelated to his job efficiency and with out following the steps outlined within the merger settlement.

A spokesperson for Unilever informed NPR in a press release that “choices on the appointment, compensation and elimination of the Ben & Jerry’s CEO will likely be made by Unilever after good religion session and dialogue with the B&J’s Impartial Board,” according to the merger settlement.

“Regrettably, regardless of repeated makes an attempt to have interaction the Board and comply with the proper course of, we’re disillusioned that the confidentiality of an worker profession dialog has been made public,” the corporate added. “We hope that the B&J Impartial Board will interact as per the unique, agreed course of.”

Ben & Jerry’s says Unilever ignored the merger settlement’s stipulation that it seek the advice of with an advisory committee from the board earlier than making any choices concerning the elimination of a CEO.

“Unilever introduced their resolution earlier than the committee had even been appointed and tried to drive the Impartial Board into rubberstamping the choice by unilaterally dictating synthetic and hasty deadlines,” it wrote, accusing Unilever of giving the board solely 4 days to reply and refusing its request for entry to supplies.

Stever was named CEO in May 2023, greater than three a long time after becoming a member of the corporate as a tour information. Ben and Jerry’s says that beneath his tenure, it “outperformed Unilever’s ice cream portfolio” and was ranked #2 on the Brand 500 Authenticity Index two years in a row.

Even so, the lawsuit alleges that Unilever executives chastised Stever in his January 2025 efficiency assessment for “repeatedly acquiesce[ing] to the calls for of the Impartial Social Mission Board” by allowing sure social media posts.

“On data and perception, Unilever’s motive for eradicating Mr. Stever is his dedication to Ben & Jerry’s Social Mission and Important Model Integrity and his willingness to collaborate in good religion with the Impartial Board, fairly than any real considerations concerning his efficiency historical past,” the grievance reads.

In response, Unilever has filed a motion to dismiss Ben and Jerry’s grievance, saying its claims are with out advantage as a result of unbiased board members don’t have the correct to carry lawsuits on behalf of the corporate and likewise didn’t specify the damages that resulted from Unilever’s alleged actions.

It says the present dispute is the “direct consequence” of the board’s resolution to opine on the Israeli-Palestinian battle “with none regard to the unfavourable impression” on each corporations.

“Unilever continues to assist B&J’s and its social advocacy work,” it wrote in its response. “Over time, the social mission of B&J’s shifted, however lately it has come to a head as B&J’s seeks to advocate for one-sided, extremely controversial, and polarizing matters that put Unilever, B&J’s, and their staff in danger.”

When did the feud start? 

The previous few years have been a rocky highway for Ben & Jerry’s and Unilever.

In 2021, Ben & Jerry’s introduced it could stop selling its ice cream within the Israeli-occupied Palestinian territories, calling that observe “inconsistent with our values.”

That call prompted a number of lawsuits within the U.S. and Israel, accusations of antisemitism and the divestment of “tons of of tens of millions of {dollars}” in Unilever’s inventory, Unilever stated in its Wednesday court docket submitting.

Unilever stated on this week’s authorized submitting that it continues to endure the results of Ben & Jerry’s resolution “to at the present time,” saying it stays on anti-boycott lists in at the least 9 states and is beneath a fatwah in Indonesia.

In 2022, Unilever bought its mental property rights to its Israeli distributor, which then put the merchandise (with Hebrew and Arabic labeling solely) again on cabinets within the West Financial institution.

Ben & Jerry’s then sued Unilever, accusing it of bypassing its board with enterprise choices. The 2022 lawsuit ended with a settlement, about which particulars have been scarce — till Ben & Jerry’s filed its November 2024 lawsuit.

That lawsuit says the 2022 settlement settlement requires Unilever to “[r]espect and acknowledge the Ben & Jerry’s Impartial Board’s main accountability over Ben & Jerry’s Social Mission and Important Model Integrity” and “work in good religion with the Impartial Board to make sure that each are protected and furthered.”

And it accuses Unilever of failing to take action within the years since, citing “varied threats, reprisals, and censorship.”

What are the social media posts at difficulty? 

Ben & Jerry’s alleges that Unilever has silenced its social media activism in direct violation of the settlement on a number of events.

It says Unilever blocked 4 posts “in assist of peace and human rights” concerning the Israel-Hamas war and ensuing humanitarian crisis in Gaza within the span of six months.

The primary instance was a submit calling for peace and a everlasting ceasefire in December 2023.

“Unilever threatened to dismantle the Impartial Board and sue the board members individually if Ben & Jerry’s — with its decades-long motto of ‘peace, love, & ice cream’ —issued the assertion supporting ‘peace’ and a ‘ceasefire,'” the lawsuit says.

It says Unilever additionally stopped Ben & Jerry’s social media managers from posting in assist of Palestinian refugees in Could 2024. The lawsuit says Unilever executives took difficulty with the assertion as a result of it “coincided with the Iranian missile assault on Israel.”

“When the matter was escalated to me, I expressed considerations concerning the continued notion of antisemitism that could be a persistent difficulty,” Peter ter Kelve, Unilever’s president of ice cream, wrote to the board, in line with its lawsuit. “It was my judgment that in gentle of the timing and nature of the submit, it was not an acceptable message right now.”

One other instance, Ben & Jerry’s says, was a blocked submit supporting campus protesters’ First Modification rights in June 2024. Unilever stated in its authorized submitting that it had “raised cheap considerations about the necessity to condemn the violence related to the protests and assist rights of Jewish college students as effectively.”

Ben & Jerry’s lawsuit accuses Unilever of censoring posts on different matters, together with one for Inauguration Day that “recognized a number of social points Ben & Jerry’s believed can be challenged” beneath President Trump, together with minimal wage, common healthcare, abortion and local weather change. The corporate alleges that Unilever blocked it, after weeks of labor, as a result of it talked about Trump by identify.

It says in latest weeks, Unilever prevented it from issuing a submit commemorating Black Historical past Month, and one other supporting free speech and linking to a petition for the discharge of Mahmoud Khalil, the Columbia College graduate detained by U.S. immigration authorities over his position in pro-Palestinian campus protests.

Unilever has denied “muzzling” the board, writing in its movement that members “have hardly been silent.”

It listed cases during which board members launched statements — reminiscent of calling for a ceasefire and supporting campus protesters — to media shops, together with Reuters and the Monetary Instances, and on their private social media accounts.

What occurs subsequent? 

Ben & Jerry’s additionally accuses Unilever of blocking its donations to 2 organizations, Jewish Voice for Peace and the Council on American Islamic Relations.

Unilever says it “exercised its proper to withhold consent to donate” after researching the organizations and discovering that they’d “made inflammatory feedback” about Hamas’ Oct. 7 assault on Israel.

Ben & Jerry’s is asking the court docket to order Unilever to launch funds to these organizations, along with unspecified damages.

It additionally asks the court docket to order Unilever to “prospectively respect and acknowledge” the unbiased board’s authority and adjust to the merger settlement’s guidelines round appointing and eradicating a CEO.

It additionally hopes the court docket will make sure that “any restructuring of Ben & Jerry’s or its mother and father doesn’t get rid of or diminish the authority” of the board. That restructuring will not be hypothetical.

Unilever announced last May that it could separate its ice cream unit — together with Ben & Jerry’s — right into a separate enterprise as a part of a restructuring anticipated to be accomplished by the top of 2025.

Ben & Jerry’s lawsuit says Unilever informed the board on March 5 that the restructuring was “imminent.”