The main objective of Co-operative Societies is to serve their members and produce benefits for them, this means that the members’ welfare and economic interests are enhanced to realize the intended objective of the co-operative movement. However, performance in Cooperative Societies has been slumping due to poor governance, where members don’t prioritize best practices hence aggravating the situation from bad to worse. Therefore, there is need to adhere to the highest standards of corporate governance that foster independence, integrity, transparency and accountability of the Board so as to safeguard the interests of the shareholders.

The principles of good corporate governance in cooperative societies include:

1. Risk management: Because most cooperatives have limited access to equity capital, effective use of available risk management tools can increase cooperative value by increasing debt capacity, avoiding bankruptcy costs, and preventing the distortion of capital budgeting decisions. Identifying and managing risks early on and putting effective controls in place can help minimize disruptions to the business. 
2. Succession Planning: Succession planning is aimed at avoiding risks that may accrue along the lifeline of the Board and performance since the environment is changing rapidly hence there are major concerns about sustainability of the cooperative society in terms of response and flexibility e: g in the practice of rotation of Directors.
3. Values and strategies: Directors should focus on continuous improvement and this includes constantly reviewing their purpose and strategic plans to tailor them in meeting the needs of their members and the society. This helps in streamlining and enabling the Board to focus on both their performance and conformance roles in directing their respective organizations.
4. Financial, Operational and Governance Reporting: The Board of co-operative societies should ensure that financial reports follow international accounting standards and there is effective communication of all operational reports to the various supervisory agents and various stakeholders.
5. Corporate communication: There should be a good corporate communication strategy framework which serves as a tool for planning communication with all stakeholders in a timely manner. This communication conveys all relevant information regarding the cooperative societies.