M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 3

Ben Jerry's has a reputation for social responsibility and social activism. For example, in 1996 it sued the city of Chicago and the state of Illinois for the right to label its products as free of rBGH (a growth hormone given to cows to boost milk production), and in 2005 it helped create the world's largest Baked Alaska (a type of frozen dessert) as part of a campaign to oppose opening Alaska's Arctic National Wildlife Refuge to drilling.
In 2000, Ben Jerry's was acquired by Unilever, a large multiproduct company. As part of the acquisition, Unilever agreed to remain hands-off about Ben Jerry's social activism. However, this agreement is now being tested over a recent hot-button issue: the fight to pass laws requiring labeling of products containing genetically modified organisms (GMOs).Ben Jerry's has been vocal about its support for GMO labeling. It is working to switch entirely to non-GMO ingredients, and has provided financial backing for a Vermont law requiring GMO labeling (the first law of its kind in the United States). Unilever, on the other hand, has been equally public about its opposition to labeling; it contributed more than $450,000 to defeat a similar labeling law in California and is a member of the Grocery Manufacturers Association suing to block the Vermont law from taking effect.
The conflict has been uncomfortable for both organizations. Some pro-labeling groups have boycotted Ben Jerry's because of its ties to Unilever. For its part, Unilever has kept to the agreement and declined to pressure Ben Jerry's, but both companies' reputations may be damaged by their tie to each other. If the conflict continues to deepen, a resolution or even compromise will be needed.
How should companies tied together in a business relationship deal with fundamental differences between their values and practices?