In brief
Anuradha Mittal, the ousted chair of Ben & Jerry's, has accused Magnum of planning a public smear campaign against her in response to her refusal to resign from the board. The ongoing dispute centers on the independence of the Ben & Jerry's board and its commitment to social missions. Magnum asserts that Mittal no longer meets the criteria to serve, following an investigation highlighting governance issues within the company. Mittal's claims resonate amid deepening tensions regarding corporate control and social responsibility.
The ousted chair of Ben & Jerry's has accused the company which owns the brand of threatening to launch a public smear campaign against her.
Anuradha Mittal, who chaired Ben & Jerry's independent board for seven years, told the BBC that Magnum had threatened to publish defamatory statements about her if she did not step down from her role.
This tumultuous situation reflects an increasingly bitter dispute between the Vermont-based activist ice cream maker and its owner over the independence of the board and its freedom to pursue its social missions.
Magnum stated that Mittal no longer met the criteria to serve on the board, following an investigation it had conducted through external advisors.
In a statement, Magnum described necessary changes to the board's functioning, which includes a nine-year limit for serving board members. Along with Mittal's removal, two other board members will also be stepping down.
Additionally, an audit of the Ben & Jerry's Foundation revealed significant deficiencies in financial controls and governance.
Mittal expressed in her interview that she has long resisted Magnum’s attempts to dictate the company's advocacy for human rights and social justice.
The turmoil has escalated since Unilever spun off its ice cream division into Magnum Ice Cream Company, severing ties that previously allowed for some independent governance under Unilever.
Recognized for its unique flavor names, Ben & Jerry's has been embroiled in social activism disputes, notably refusing sales in occupied territories and being allegedly curtailed from launching a product in solidarity with Palestine.
Mittal claimed that Unilever-Magnum executives pressured her to resign by threatening defamatory statements and wooed her with a lucrative role in a Unilever-funded nonprofit, which she deemed inappropriate.
Magnum has noted that its steps were aimed at strengthening corporate governance and preserving Ben & Jerry’s mission focused on social responsibility. However, critics including original co-founder Jerry Greenfield have expressed concerns that the brand's social mission may be stifled.
As Magnum claims commitment to Ben & Jerry's values, the brand stands at a cautious crossroads, navigating the intersection of corporate governance and its storied legacy in social activism.
