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Unilever ( UL ) said to challenge CEO Stever's views on mission

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Ben & Jerry's ( UL ) sued Unilever ( UL ) to preserve social activism

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Unilever ( UL ) did not respond to requests for comment

(Adds comments on corporate governance issues, details about

Ben & Jerry's ( UL ), paragraphs 2, 4, 7-9; adds second byline)

By Jonathan Stempel and Jessica DiNapoli

NEW YORK, March 18 (Reuters) - Ben & Jerry's ( UL ) said its

parent company, Unilever ( UL ), decided to oust the ice cream

maker's chief executive, Dave Stever, escalating a battle over

the subsidiary's independence on social policy issues.

In a Tuesday night filing in Manhattan federal court, Ben &

Jerry's ( UL ) said Unilever ( UL ) advised on March 3 it was "removing and

replacing" Stever without approval from its independent board,

after repeatedly threatening personnel if they did not comply

with the parent's "efforts to silence the social mission."

Stever was named Ben & Jerry's ( UL ) chief executive in May 2023,

after having been with the maker of Cherry Garcia since being

hired as a tour guide in 1988.

Ben & Jerry's ( UL ) has been suing Unilever ( UL ) to stop the parent's

alleged efforts to dismantle its board and end its progressive

social activism, which has included protesting the war in Gaza

and supporting a movement to defund police.

The latest accusations were included in a proposed amended

complaint, which Vermont-based Ben & Jerry's ( UL ) needs court

permission to file.

Unilever ( UL ), based in London, had faced a Wednesday deadline to

seek dismissal of Ben & Jerry's ( UL ) earlier complaint. It did not

respond to several requests for comment.

The alleged censorship reflects corporate fear at

retaliation by the Trump administration or other governmental

bodies in their "crusade against all things DEI," said Doug

Chia, president of advisory firm Soundboard Governance,

referring to diversity, equity and inclusion programs.

"For a corporation, they don't want to take any chances on

any statements about any social issue or political issue or

geopolitics," Chia said.

He said some of Ben & Jerry's ( UL ) stances are "pushing it very

far in a progressive direction in a very vocal way," more

reflective of an advocacy group or non-governmental organization

than a mainstream maker of ice cream.

Ben & Jerry's ( UL ) has had a socially conscious mission since its

1978 founding by Ben Cohen and Jerry Greenfield.

Unilever ( UL ) bought Ben & Jerry's ( UL ) in 2000.

The companies have been at odds since 2021 when Ben &

Jerry's ( UL ) decided to stop selling ice cream in the

Israeli-occupied West Bank, calling it inconsistent with its

values. That business was later sold.

Many companies have retreated on social policies that Donald

Trump and other conservatives deem too liberal, as the U.S.

president seeks to reshape the federal government and parts of

corporate America.

Last month, Ben & Jerry's ( UL ) accused Unilever ( UL ) of unilaterally

banning it from publicly criticizing Trump, ostensibly because

of the "new dynamic."

Unilever ( UL ) plans to spin off Ben & Jerry's ( UL ), Breyers, Magnum

and other ice cream brands later this year, as it simplifies a

product portfolio whose dozens of other brands include Dove,

Hellmann's, Knorr, Surf and Vaseline.

The case is Ben & Jerry's Homemade Inc v Unilever ( UL ) et al,

U.S. District Court, Southern District of New York, No.

24-08641.