Ben & Jerry’s, the beloved ice cream company known for their social justice activism, recently announced the adoption of new governance practices. In response, the firm has since ousted three independent members of the company’s board. These changes come as the company adjusts to its new ownership under The Magnum Ice Cream Company, following a spinoff from Unilever.
In accordance with this new governance structure, independent board members for Ben & Jerry’s will now serve no more than nine years in that role. This policy seeks to avoid stagnating leadership and create space for different thinkers on the board. Due to this change, Chair Anuradha Mittal will no longer be able to continue serving in her position. Further, board members Daryn Dodson and Jennifer Henderson will lose their eligibility.
The governance change comes F pi#or as Ben & Jerry’s reaffirms its long-term cooperation with parent company Unilever. Unilever’s been proud owner of the company since buying it in 2000. Ben & Jerry’s is still owned by Unilever, but the company continues to operate independently. The corporation nonetheless retains its independent board and discretion to act in ways that further its social mission. As 2021 rolled in, the company came under serious fire about its independence. It recently declared it would no longer sell its products in Israeli-occupied regions, leading Unilever to divest of its Israeli operations to a local licensee.
The move has aggravated the company’s internal conflict—most notably since its co-founder Jerry Greenfield left the board in mid-September. Greenfield’s exit after nearly 50 years with the company has raised concerns among supporters about Ben & Jerry’s commitment to its social mission. His departure came at a time of rising tensions over Unilever’s control over the brand.
Ben Cohen, another co-founder of Ben & Jerry’s, has publicly criticized Unilever’s actions, describing them as a “blatant power grab designed to strip the board of legal authority and independence.” This sentiment would underscore a larger brewing discontent within the firm. Employees are concerned by what they see as an imbalance of power between the independent board and the parent company.
A spokesperson for Magnum emphasized that the new governance practices are intended “to preserve and enhance the brand’s historical social mission and safeguard its essential integrity.” Independent Board The new leadership structure is intended to protect Ben & Jerry’s dedication to social mission. It will bravely traverse the thorny shoals of corporate ownership.
Ben & Jerry’s had changed a lot in that time. Today, it struggles with reconciling its operational priorities with its role as a corporate leader in social equity. The company’s current trajectory begs for answers on how the company will resolve these tensions going forward.