The second step in stakeholder analysis is to identify the secondary stakeholders—those who have only an indirect stake in the corporation but who are also affected by corporate activities. These usually include nongovernmental organizations (NGOs, such as Greenpeace), activists, local communities, trade associations, competitors, and governments. Because the
corporation’s relationship with each of these stakeholders is usually not covered by any written or verbal agreement, there is room for misunderstanding. As in the case of NGOs and activists, there actually may be no relationship until a problem develops—usually brought up by the stakeholder. In the normal course of events, these stakeholders do not affect the corporation’s ability to meet its economic or legal responsibilities. Aside from competitors, these secondary
stakeholders are not usually monitored by the corporation in any systematic fashion. As a result, relationships are usually based on a set of questionable assumptions about each other’s needs and wants. Although these stakeholders may not directly affect a firm’s short-term profitability, their actions could determine a corporation’s reputation and thus its long-term performance.