Friday, April 06, 2007

Fair and Lovely Whitening Cream - CSR failure

I am skeptical about all corporate social responsibility initiatives on the basis that global hyper-capitalism constitutes a moral universe completely at odds with equality. Read this study to find out more!

Doing well by doing good: case study - 'Fair & Lovely' whitening cream
This paper takes a critical look at the "bottom of the pyramid" proposition which argues that companies can make profits while also doing good. In particular, the 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. The paper argues that Fair & Lovely is a profitable and fast growing brand, however the paper demonstrates its negative implications for public welfare.

These problems include:

  • whitening creams pose a special risk in developing countries where dermatologists and general medical practitioners are typically not the first to be consulted on the treatment of skin diseases
  • women's groups and activities have alleged that advertisements for the cream are racist because they propose that having fairer skin will assist women obtain a husband and a job
  • these advertisements drown out the efforts and voices of women's organisations that are working to promote equality and social justice for women in their countries
  • Unilever is not living up to its corporate social responsibility (CSR) objectives.

The paper also highlights the difficulty of compliance with social responsibility standards by corporations such as Unilever arguing that voluntary CSR, self-regulation, activism by civil society, and government regulation has been ineffective. Available online via Eldis

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