Ben & Jerry’s Foundation faces scrutiny as Magnum prepares to split from Unilever

An internal audit of the Ben & Jerry’s Foundation has uncovered shortcomings in financial controls and governance, according to Magnum, the Unilever unit that will take ownership of the ice-cream maker after its planned spin-off next week.

The review also identified weaknesses in compliance practices, including conflict-of-interest policies, Magnum said. The findings add a new layer to the long-running tensions between Unilever and Ben & Jerry’s, whose outspoken political stance--particularly on Israel and Palestine--has repeatedly sparked friction with its parent company.

Magnum conducted the audit as part of its preparations for becoming an independent entity. The company said it is working with the Ben & Jerry’s Foundation to improve governance through measures such as adopting a formal code of ethics, tightening conflict-of-interest rules, and establishing trustee term limits.

Reuters reported that both Unilever and Magnum have been pressing Ben & Jerry’s to address governance issues ahead of the separation, especially as the brand will make up a significantly larger share of the new company’s revenue. Ben & Jerry’s recorded annual revenue of $1.28 billion, representing nearly 14% of Magnum’s global turnover, compared to 1.8% of Unilever’s.

Jerry Greenfield, the ice-cream maker’s co-founder, resigned as a “brand ambassador” earlier this year and is reportedly stepping down as a foundation trustee as well.

A long-running feud

The roots of the dispute stretch back decades. When Unilever acquired Ben & Jerry’s in 2000, the deal preserved the independence of the company’s progressive foundation, created in 1985.

But relations deteriorated sharply in 2021, when Ben & Jerry’s announced it would halt sales in the Israeli-occupied West Bank. The company’s independent board sued Unilever twice, accusing its parent of improperly restraining its public statements on Gaza and related issues.