Ben & Jerry’s’ Israel boycott melted away last month when its parent company, Unilever, settled a federal lawsuit brought by the company’s Israeli licensee, Avi Zinger. Unilever sold Zinger the rights to distribute the famous ice cream in communities throughout Israel, including in the disputed West Bank. For months, Unilever CEO Alan Jope had insisted his company’s hands were tied because Ben & Jerry’s retained decisionmaking authority over social justice initiatives, which apparently included discriminating against Jews and Arabs based on where they lived. Jope’s stunning reversal serves as a warning to other executives: boycott Israel at your own peril.
In July 2021, Unilever acquiesced to a push by Ben & Jerry’s’ independent board—chaired by a prominent supporter of the Boycott, Divestment, Sanctions (BDS) campaign against Israel—to terminate its relationship with Zinger. This followed a decade of activist pressure because Zinger refused to stop distributing ice cream in the West Bank.
The boycott led Unilever down a rocky road, however. Seven states around the country invoked anti-BDS laws, divesting hundreds of millions of dollars in state pension funds from Unilever for its boycott of Israel. North Carolina was poised to follow.
Jewish newspaper ads urged a boycott of Ben & Jerry’s. Scoop shop franchisees pleaded with the corporation to reverse course, citing a decline in sales as Jewish customers protested. A rally in Times Square forced the Ben & Jerry’s flagship store to close early. Protests broke out in London, too, where Unilever is based.
State attorneys general fired off a letter to Unilever. Members of the House and Senate wrote to the Securities and Exchange Commission urging an investigation into Unilever, a publicly traded company, for failing to disclose to investors a controversial decision that could trigger state divestment and harm its stock price. A shareholder then filed a class-action lawsuit alleging the same. The cherry on top came when Zinger filed a federal lawsuit against Unilever to prevent the termination of his 34-year relationship with Ben & Jerry’s.
The company went further, coming close to labeling the BDS campaign antisemitic. “Antisemitism has no place in any society,” a Unilever statement read. “We have never expressed any support for the [BDS] movement and have no intention of changing that position.”
Given the difficulties faced by Airbnb and Unilever, you’d think the CEOs and chief counsels of large corporations would have learned their lesson. Apparently not. The next potential target for state anti-BDS laws, congressional investigations, and litigation? Chicago-based financial research giant Morningstar, whose ESG research subsidiary Sustainalytics appears to use the BDS playbook to produce negative ratings of companies connected to Israel despite full knowledge such ratings may drive divestment.
Before its acquisition by Morningstar, Sustainalytics had a long track record of promoting boycotts of Israel. It produced an “Occupied Territories Involvement Report” that encouraged investors to avoid territories controlled by Israel. When numerous companies and churches boycotted Israel, Sustainalytics was there providing research support.