Background Information / Additional Perspectives Sagip Pasig Movement (SPM) envisions a society that works as one for a balanced ecosystem towards the improvement of life for the succeeding generations. Its mission is to mobilize community participation through the establishment of a movement of strong and capable community – based organizations working towards the rehabilitation of the Pasig and other river system. Sagip Pasig Movement conducted its first mock awarding in April 22, 1995 known as “Lason Awards”. SPM ranked the polluters according to its biochemical oxygen demand (BOD), the primary parameter used by the Laguna Lake Development Authority (LLDA) and the Department of Environment and Natural Resources (DENR) to determine waste water effluent quality. Other parameters used are suspended solids, acidity or alkalinity and the apparent presence of oil and grease. Lason Award recipients exceeded the legal and tolerable limits set by LLDA and DENR. The objective is to initiate change through public disclosure. The award gives recognition to the companies or
organizations and establishments that contribute to pollution or destruction of the Pasig River. The Lason Award is a mock award given every April 22 (International Earth Day) to the top ten industries found to be polluting the river. Since 1995, majority of Lason Awardees have installed wastewater treatment facilities because of the pressure created by the exposé. Some of these industries have been active in their own environmental programs and/or have partnered with SPM and government agencies in various river rehabilitation projects. Among the recipients of this award was Goldilocks Bakeshop. One of their plants in Sta.Mesa has discharged significant amounts of waste materials in the river due to the unfinished water waste treatment facility. “Being identified as a Lason Awardee has an impact on how consumers see a company… The firm would have tp dp something about that image.” said EDN Executive Director, Toby Tanada. With this award associated to the company, Goldilocks Bakeshop, the leading manufacturer of bread and pastries in the Philippines has its reputation at stake.
Goldilocks Bakeshop received the mock Lason award on April 22, 1998 in commemoration of Global Earth Day. III. Point of View In doing this study, the researches have agreed to use the perspective of the resident public relation professionals for Goldilocks Bakeshop, Inc. IV.
Situational Analysis (LITE)
Legal Because Goldilocks Bakeshop unfortunately made it to be one of the top six polluters of the Pasig River during the Global Earth Day celebration last April 22, the leading manufacturer of cakes and pastries is now found liable for some charges. Goldilocks bakeshop was found responsible to the Department of Natural Resources (DENR) Administrative order
(DAO) No.35, specifically on the following sections found on DENR official website: Section 9, (b) In order to avoid deterioration of the quality of the receiving body of water, no new industrial plant with high waste load potential shall discharge into a body of water where the dilution or assimilative capacity of said water body during dry weather condition is insufficient to maintain its prescribed water quality according to its usage or classification. Section 9 (d-1) No industrial or manufacturing plant or source of pollution shall be operated at capacities beyond the limits of operation or capability of the wastewater treatment facility in order to maintain the effluent quality within the standards or pertinent conditions required by law and/or stipulated in the permit to operate. DAO No.35 series of 1990 was approved by Sgd. Fulgencio S. Factorian, Jr. Secretary of DENR from 1987 to 1992. In addition, Goldilocks have violated the Section 8 under the PD No.984, prohibiting the increase in volume or strength of any wastes in excess of the permissive discharge. They are now
liable to a penalty of not to exceed one thousands pesos for each day during which the violation continues, or by imprisonment of from two years to six years, or by both fine and imprisonment, and in addition such person may be required from continuing such violation as hereinafter provided. Goldilocks Bakeshop was also subjected to Republic Act No. 3931, an act creating the national water and air pollution control commission, with its section 9, which states that: “No person shall dispose into such waters or atmospheric air, any organic matter or inorganic matter or any substance in gaseous or liquid form that shall cause pollution of such water.” It was stated under the act that no person discharge of all industrial wastes and other wastes may be discharged into the waters of the Philippines without first securing a permit from the city or district engineer for the discharge of all industrial waste. Goldilocks as found violating the said provision shall be liable to a penalty of not to exceed fifty pesos for each day during which the violation continues, or by imprisonment of from two years to six years, or by both fine and imprisonment and in
addition such person may be required from continuing such violation as hereinafter provided. Republic Act No. 3931 was approved on June 18, 1964 and has not been revised until the Goldilocks Lason reputation occurred.
Industrial Because of the Lason award given to the company, Goldilocks’ major clients such as McDonald’s, Wendy’s, Carl’s Jr., and Burger King stopped their orders from the company. The said event affects the current state of financial earnings and market shares of the company being unable to continue their operation due to some governmental orders that hinder them from distributing their products to their clients until certain resolutions have been done.
Technology In order to bring back the reputation of the company and the trust of the public, Goldilocks did advancement in their
wastewater system. Since they exhibited improper wastewater disposal, they tried to improve it by imposing appropriate wastewater management and disposal. They complied with the environmental laws by DENR which aimed to decrease industrial pollution. Goldilocks built a more efficient and operational wastewater treatment facility. Because of this effort of Goldilocks, they received the Most Improved Company Award given in 1999.
Environment The Goldilocks insufficient wastewater treatment had an impact on the environmental condition of the Pasig River. The company contributed to the water pollution and because of this, the company became a recipient of the Lason Award given by Sagip Pasig Movement. The Sagip Pasig Movement had set criteria for this award. It is said that a company must have a pending case of water pollution recognized by the DENR’s Pollution Adjudication Board or with the Laguna Lake Development Authority. This only implies that it did not comply
with the standard of water quality set by the DENR. Other constraints used are suspended solids, acidity, alkalinity and the presence of oil and grease. Goldilocks was considered as one of the top polluters since the company had been dumping 600-900 mg/L of biodegradable matters demanding oxygen in the river. The companies were only permitted to deposit up to 50 mg/L of biodegradable matters demanding oxygen in the river. Goldilocks was rated Red by the DENR. Red is a category of DENR’s ECOWATCH rating system which includes all firms that have some pollution control devices installed which are however insufficient to bring the firm to compliance with environmental laws, rules and regulations. This report was forwarded to the Pollution Adjudication Board. Pasig River was once considered as one of the most beautiful river but now it is biologically dead. Improper wastewater management of firms and industries became the cause of this annihilation. Goldilocks was one of the companies that emitted large number of wastewater.
• SWOT Analysis STRENGTHS
WEAKNESSES - Has unfinished water waste treatment facility.
Goldilocks is known as the prominent producer of bread, cakes, and pastries in the Philippines.
- The company has pending cases filed by the DENR THREATS - Lost investors and decrease profitability -Consumers would patronize other bakeshop. - The company will lose the public’s trust
- Has over 100 branches. OPPORTUNITIES - Improve water waste facility treatment - The company could exercise their corporate social responsibility. - Have the opportunity to win the Dangal Award
Problem and Opportunity Statement The company’s reputation was put at risk because of the
mock Lason Award given to Goldilocks Bakeshop on April 22, 1998. The image of the company will be subjected to scrutiny by its publics. Goldilocks major clients were McDonald’s, Burger King, Wendy’s and other leading fast-food chains. The award created distrust to their clients and consumers. The exposure of the subject on the media aggravated the issue. Also, the Sagip Pasig Movement advocates abandoning the products and services of the company. Goldilocks is considered to be a company under crisis because of what happened. In order to survive this kind of crisis, Goldilocks must improve their wastewater system. The company is expected to conform to the requirements set by the DENR. Through this, they will be able to abide the environmental laws and decreasing industrial pollution. The Goldilocks needs actions that will take back the trust of the public most especially the consumers, the clients and the stakeholders.
The company generally must be able to repair their reputation and image to the public affected by Lason award and achieve these specific goals: • To finish the water waste treatment facility and to properly manage their waste disposal.
To regain the trust of their clients and maintain good relationship with customers in order to avoid the loss of profitability.
To be recognized as one of the companies who have exemplary environmental performance according to the criteria of SPM.
VII. Targeted Publics / Segmented Publics Goldilocks must be able to reach out the following targeted publics: a. Government Offices and Environmental Groups - Department of Environment and Natural Resources (DENR)
- Laguna Lake Development Authority (LLDA) - Sagip Pasig Movement (SPM) - Pollution Adjudication Board (POB)
b. Media - Print media - Mass media (TV and Radio)
c. Clients / Stakeholders - McDonalds - Burger King - Wendy’s - Other food chains
d. Consumers - Middle class (Male and Female)
People who patronize Goldilocks products
- Workers assigned at Goldilocks Sta.Mesa branch
f. Other public - Residents near the Pasig River’
VIII. Alternative Courses of Action
Conduct a press conference and defend the company by justifying that the waste water treatment facility is still under renovation.
Divert the public’s attention from the Lason Award by creating advertisements about the processes and procedures on how they make their products emphasizing their assets and achievements which would make them look good in the public’s eyes.
Designate a spokesperson to communicate with the media. Fix the unfinished water waste treatment facility. Cooperate with SPM and be involved in the organization’s programs.
Recommendation We strongly recommend ACA #3 since we believe that
Goldilocks must be responsible enough to face the issue that challenges to threaten the company’s reputation by maintaining the complete transparency with the media. They also need to coordinate with SPM in order to comply with the standards of DENR. In line with this, the company will have the opportunity to take part with the advocacy of the organization. The improvements to be conducted by Goldilocks to their water waste treatment facility will serve as an example for other companies. This will regain the trust of their clients, investors and consumers.
Action Plans (Strategies, Tools, and Tactics) Upgrade the wastewater treatment facility and enforce proper management of waste disposal.
Be involved in sponsoring seminars and other events concerning the environment.
• Assign a designated spokesperson to deal with the media interviews about how the company is working to solve the problem, and on how the company is helping save the environment particularly the Pasig River.
Allot a portion of the company’s income to support the advocacy of Sagip Pasig Movement.
• Encourage employees to participate in environment concerned programs and activities.