Ben & Jerry's co-founder Jerry Greenfield shocked the business world this week when he resigned, saying parent company Unilever (NYSE:UL) had stifled the brand's once fierce independence on social issues.
Fellow co-founder, Ben Cohen, posted a letter to X on Greenfield’s behalf:
That kind of founder exit is strikingly new. For most of the 20th century, politics rarely dictated whether a founder stayed or left. Nowadays, founder and CEO exits over politics are cropping up more often as personal views mesh with corporate identites.
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Then
Many CEO and founder departures in the 20th century were driven by personal, financial, or strategic issues rather than politics.
For example, John Sculley was forced out of Apple (NASDAQ:AAPL) in 1993 due to poor labor relations and mismanagement, while Steve Jobs was ousted in 1985 due to a power struggle with the CEO.
James Burke retired from Johnson & Johnson (NYSE:JNJ) in 1989 after successfully managing the Tylenol crisis.
Ray Kroc served as senior chair at McDonald's (NYSE:MCD) up until he died in 1984.
These exits were often tied to internal corporate conflicts, management struggles, or personal circumstances rather than political pressures.
Now
These days, politics and business are intertwined. Corporations sometimes embrace social responsibility initiatives to make activism part of the playbook--and a flashpoint for founders.
Recent examples show how politically charged the boardroom has become:
- Bob Chapek was fired as CEO of Walt Disney (NYSE:DIS) in 2022 after facing intense criticism from both liberal and conservative sides over how the company responded to Florida legislation dubbed the "Don't Say Gay" bill.
- Mozilla forced out Brendan Eich in 2014 after backlash over his donation against same-sex marriage.
- CrossFit's Greg Glassman resigned in 2020 after inflammatory remarks on George Floyd's death.
- Papa John's (NASDAQ:PZZA) John Schnatter lost his post in 2018 after racially insensitive comments.
In each case, it was the politics that caused the split.
Why Greenfield Is Different
Greenfield's move flips the script. He didn't resign over personal controversy--he quit because his company stopped being political enough. When Unilever bought Ben & Jerry's in 2000, it promised to protect the brand's social mission. Twenty-five years later, Greenfield says that promise is broken.
Ben & Jerry's has long been a champion of social and environmental causes, using its platform to advocate for racial justice, climate change action, and LGBTQ+ rights.
The company, founded in 1978, has supported various movements in recent years Black Lives Matter and pushed for climate action with campaigns like “Save Our Swirled.”
The brand, known for flavors like “Cherry Garcia,” also backed the legalization of cannabis. Known for its commitment to fair trade and sustainable sourcing, Ben & Jerry's has been vocal about immigrant rights, the fight against corporate influence in politics, and support for living wages.
Clash With Unilever
The ongoing conflict between the Vermont-based ice cream manufacturer and its parent company, Unilever, escalated in November 2024 when Ben & Jerry’s filed a federal lawsuit in New York.
The lawsuit accuses Unilever of breaching an agreement that grants the ice cream brand’s independent board the authority to make decisions on social justice activism.
Specifically, Ben & Jerry’s claims Unilever silenced its support for Palestine, including blocking donations to organizations like Jewish Voice for Peace.
This follows a prior 2022 lawsuit related to Unilever’s sale of Ben & Jerry's Israel license without permission.
The dispute highlights tensions over Ben & Jerry's activism and Unilever's corporate control, with reports suggesting Unilever may consider selling off its ice cream brands.
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