Unilever has reportedly decided to halt millions in funding to the Ben & Jerrys charitable foundation, following the latter's refusal to submit audit documents concerning donations to pro-Palestinian organizations.
This decision marks a significant escalation in the ongoing conflict between the corporate giant and its politically active subsidiary.
Peter ter Kulve, who oversees Unilever's ice cream division, communicated via email to Ben & Jerrys executives that the foundations trustees have "continued to resist basic oversight" and are not cooperating with corporate auditors' requests. "It represents a marked departure from the norms of charitable organizations, for whom transparency is typically a bedrock operating principle," ter Kulve stated in the email, as reported by Semafor.
According to The New York Post, this audit is part of Unilever's broader strategy to divest its ice cream business, which includes the Vermont-based Ben & Jerrys, known for its progressive stances. The foundation, which distributed over $5 million of Unilevers funds in 2022 primarily to progressive groups, has been under Unilever's ownership since the multinational acquired Ben & Jerrys in 2000. However, the brand's outspoken political positions have often been at odds with Unilever's broader business goals.
The audit has become a contentious issue, revealing deeper conflicts over the foundation's charitable activities. Ter Kulve mentioned that Unilever and the prospective independent management team of Ben & Jerrys have made several attempts to address the foundations concerns, including changing the audit firm and promising to keep certain grantee information confidential. "The Foundation is a powerful force for good and has played a meaningful role in advancing the Ben & Jerrys social mission," ter Kulve wrote, reaffirming the commitment to the foundation's mission. Despite these efforts, the dispute continues to intensify.
Neither Unilever nor Ben & Jerrys representatives have commented on the situation. The clash between the British conglomerate, which deals in food, beverages, cleaning agents, and personal care products, and the Ben & Jerrys Foundation arises amid Unilever's broader plan to spin off its ice cream division, announced last year. The audit, initially a routine financial review, has evolved into a heated debate over governance, transparency, and political values.
The foundation's trustees argue that Unilever is leveraging the corporate restructuring as a pretext to undermine its philanthropic endeavors. The discord dates back to at least 2021 when Ben & Jerrys declared it would cease selling its products in Israeli-occupied Palestinian territories. In response, Unilever sold the Ben & Jerrys license for the region, prompting backlash from the brands independent board of directors.
In a further development, Ben & Jerrys independent directors filed a lawsuit against Unilever in November, accusing the parent company of stifling the ice cream makers public support for Palestinian refugees.
This legal action underscores the deepening rift between the two entities, highlighting the challenges of balancing corporate interests with the subsidiary's social and political commitments.
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