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Case Study on Goldilock's Lason Reputation
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Transcript of Case Study on Goldilock's Lason Reputation
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.