Ben & Jerry’s has made headlines for a bold claim against its parent company, Unilever. They allege that Unilever dismissed CEO David Stever because he prioritized the ice cream company’s social mission over corporate directives. This complaint was filed in federal court in Manhattan.
According to Ben & Jerry’s, Unilever’s actions reflect a troubling trend. The company accuses Unilever of pressuring them to tone down their social activism. The filing states that Unilever informed Ben & Jerry’s board on March 3 about its plan to replace Stever—a decision made without the advisory board’s approval. This goes against an agreement from their 2000 merger, where both companies agreed to maintain Ben & Jerry’s independence, allowing the ice cream maker to advocate for social issues.
Interestingly, sales at Ben & Jerry’s have been outperforming those of other Unilever brands, including Magnum, in 2024. This suggests that consumers appreciate Ben & Jerry’s commitment to social causes. In fact, recent data shows that brands that engage in social activism can gain a competitive edge. According to a 2023 survey by Sprout Social, 70% of consumers prefer brands that take a stand on social issues.
Comparatively, looking at the history of corporate activism, brands like Ben & Jerry’s have long led the charge. They famously advocated for issues such as climate change and racial justice, often polarizing opinions but fostering strong loyalty among their core supporters.
Social media reaction to these developments has been quite active, with users divided in their support. Many applaud Ben & Jerry’s for standing firm in its values, while others worry about the implications for corporate governance and accountability.
As this situation unfolds, it highlights a larger conversation about the role of corporations in advocating for social change. How companies balance profit motives with societal impact will continue to be a key issue in the business landscape.
For more insights on corporate responsibility and social activism, you can explore this Harvard Business Review article.
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Ben & Jerry’s Homemade Inc,Unilever PLC,Ice Cream and Frozen Desserts,Mergers, Acquisitions and Divestitures,Appointments and Executive Changes,Suits and Litigation (Civil),Corporate Social Responsibility