Unilever is reportedly halting millions in funding to the Ben & Jerry’s charitable foundation after the foundation refused to provide audit documents concerning donations to pro-Palestinian groups. This situation is heightening an internal clash between the parent company and its more politically active subsidiary.
Peter ter Kulve, the head of Unilever’s ice cream division, informed Ben & Jerry’s executives through an email that the trustees of the foundation have been hesitant to allow basic oversight, resisting requests from corporate auditors, according to Semafor.
In the email, ter Kulve mentioned that this behavior deviates significantly from the usual transparency expected from charitable organizations, which typically view transparency as a foundational principle.
This audit process is part of Unilever’s strategy to separate its ice cream business, which notably includes the progressive Vermont-based brand.
Last year, the Ben & Jerry’s foundation allocated over $5 million of Unilever’s funds, predominantly to progressive causes.
Since Unilever acquired Ben & Jerry’s in 2000, the brand’s politically outspoken stance has often conflicted with the broader objectives of the parent company.
The ongoing audit has sparked tensions between Unilever and the foundation. Reports indicate that the investigation into the foundation’s activities has unveiled a more extensive struggle over the nature and extent of its charitable contributions.
Ter Kulve indicated that both Unilever and the prospective management team of an independent Ben & Jerry’s have made numerous attempts to alleviate the foundation’s concerns, which included changing the auditing firm and agreeing to keep specific grantee information confidential.
Despite these measures, the conflict shows no signs of resolution.
Neither Unilever nor Ben & Jerry’s provided comments regarding this situation.
The clash between the British conglomerate, which is involved in various sectors like food and personal care, and the Ben & Jerry’s Foundation has arisen concurrently with Unilever’s announcement last year to spin off its ice cream division.
Initially, the foundation’s audit was a standard financial review, but it has escalated into a contentious debate over governance, transparency, and political values.
Trustees of the foundation allege that Unilever is leveraging the corporate restructuring as a pretext to undermine the foundation’s philanthropic efforts.
The underlying tensions can be traced back to at least 2021 when Ben & Jerry’s declared it would stop selling its products in areas of Israeli-occupied Palestine.
This prompted Unilever to sell the brand’s license for that region, further inflaming issues with the foundation’s independent board of directors.
In November, the independent directors of Ben & Jerry’s even filed a lawsuit against Unilever, alleging the parent company was stifling the ice cream brand’s public support for Palestinian refugees.
