A recent audit of the Ben & Jerry's Foundation has uncovered several weaknesses in how the charity is managed, raising concerns just days before Magnum becomes its new owner.
Magnum, which will separate from Unilever next week, said the review showed problems with financial controls, governance practices, and conflict-of-interest policies within the foundation funded entirely by Ben & Jerry's.
Magnum explained that it ordered the audit as part of its preparations for the spin-off and described the step as standard good governance.
According to US News, a Unilever spokesperson supported the move, noting that Magnum is "taking appropriate steps" in response to what the review found.
While the details of the audit were not made public, Magnum shared that it has already sent the results to the foundation and suggested stronger rules, including a more formal ethics code, clear limits on trustee terms, and tighter checks on how grants are approved.
The company also said the trustees have not addressed all the issues. Two people familiar with the situation, who asked to remain unnamed, said the audit did not uncover misconduct or ethical violations.
They added that the trustees have recently signed a new code of ethics, though the improvements are still in progress.
🚨 BREAKING: A Unilever-backed audit found serious failures in financial controls and governance at the Ben & Jerry’s Foundation.
— Yehuda Teitelbaum (@chalavyishmael) December 3, 2025
The incoming parent company uncovered gaps in financial oversight and major conflicts of interest.
The people who scream the loudest...
🔗👇 pic.twitter.com/Fdyeyg6TJT
Ben & Jerry's Activism Poses Risks
The review arrives during ongoing strain between Ben & Jerry's and its soon-to-be new parent.
Co-founder Ben Cohen has said he expects the disagreement to increase after the spin-off, especially because the brand has taken outspoken positions on political matters, including Israel's actions in Gaza and US immigration policies.
These public stances have repeatedly clashed with Unilever's more cautious approach.
Ben & Jerry's is also financially significant for the new company. The ice-cream brand makes about €1.1 billion, or roughly $1.28 billion, in yearly revenue, Reuters reported.
That amount represents nearly 14% of Magnum's global income, compared with only 1.8% of Unilever's total.
Because Ben & Jerry's accounts for a significant portion of Magnum's revenue, the company faces pressure to carefully manage any risks associated with the brand's outspoken political activism.
Unilever earlier warned that it might stop funding the foundation unless it agreed to the audit. The charity receives around $5 million each year from Ben & Jerry's, and Magnum said it intends to continue that support after the transition.
Meanwhile, co-founder Jerry Greenfield, who stepped down as a brand ambassador earlier this year, is also leaving his role as a foundation trustee.
Originally published on vcpost.com
