The company will also spin off its ice cream business, which includes Ben & Jerry's, to reduce costs and boost profits.
Fair & Lovely — soon to be called Glow & Lovely — has long been criticized as racist for promoting light-colored skin as the standard of beauty in South Asia.
The consumer goods company, which owns brands like Dove Soap and Lipton tea, joins a growing advertising boycott against Facebook.
The cream, primarily sold in Southeast Asia and the Middle East, is changing to celebrate a "greater diversity of beauty."
Unilever, Nivea, Garnier and Neutrogena are among the companies selling products that lighten skin.
"Workplace diversity is no longer just a good thing to do – it has become a business necessity."
Sponsored by PwC
Fixing that will take some bold new ideas.
The company is also investing $50 million to help women of color entrepreneurs.
Several major companies announce a new push to remove gender stereotypes from commercials.
How do you fix a problem if the people in power don’t see a problem?