Doing Well by Doing Good - Case Study: 'Fair & Lovely' Whitening Cream

Abstract

According to the ‘doing well by doing good' proposition, firms have a corporate social responsibility to achieve some larger social goals, and can do so without a financial sacrifice. This paper empirically tests this proposition by examining in depth the case of ‘Fair & Lovely,' a skin whitening cream, marketed by Unilever in many countries in Asia and Africa, and, in particular, India. Fair & Lovely is indeed doing well; it is a profitable and fast growing brand. It is, however, not doing good, and we demonstrate its negative implications for public welfare. We conclude with thoughts on how to reconcile this divergence between private profits and public welfare.