I. 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.

II. Time Context

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. Analysis

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

- Goldilocks is known as the

prominent producer of

bread, cakes, and pastries

in the Philippines.

- Has over 100 branches.

WEAKNESSES

- Has unfinished water waste

treatment facility.

- The company has pending

cases filed by the DENR

OPPORTUNITIES

- Improve water waste facility

treatment

- The company could exercise

their corporate social

responsibility.

- Have the opportunity to win

the Dangal Award

THREATS

- Lost investors and

decrease profitability

-Consumers would patronize

other bakeshop.

- The company will lose the

public’s trust

V. 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.

VI. Objectives

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

e. Employees

- Workers assigned at Goldilocks Sta.Mesa branch

f. Other public

- Residents near the Pasig River’

VIII. Alternative Courses of Action

1. Conduct a press conference and defend the company by

justifying that the waste water treatment facility is still under

renovation.

2. 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.

3. 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.

IX. 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.

X. 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.