The Principles of Good Governance for co-operatives aim to assist co-operatives to put the principles of good governance in practice and serve the needs of their members. As in the case of King III Code of Good Governance the objective is to improve the quality of leadership that boards of directors and managers provides to their respective co-operatives. The principles seek to assist directors as well as managers to ensure compliance with legislative requirements as well as the requirements as stipulated in the co-operatives own constitution and to assist members of co-operatives to understand their rights as members of co-operatives. Unlike the King Code of Good Governance, which is voluntary, section 3 of Co-operatives Amendment Act requires all co-operatives to comply with the prescribed principles of good governance. In support of International Labour recommendation 193, the principles of good governance, furthermore also support and promote compliance with this recommendation, of which South Africa is a signatory.

The principles of good governance for co-operatives provide a framework for co-operatives to develop their own operational policies that enforce the principles of good governance based on co-operative values and principles as well as the vision, mission and objectives of the co-operative itself. Through the application of these principles of good governance, co-operatives should be able to operate as effective co-operative businesses that are economically viable, advance the integrity of the corporate identity of co-operatives as a viable and sustainable business model that can make a meaningful contribution towards the economic viability and social responsibility of its members.

The principles of good governance for co-operatives do not detail or define all aspects of good governance but it outlines the fundamentals of good governance informed by the unique identity of the co-operative business model. The principles of good governance for co-operatives are generic and not aimed at any specific kind of co-operative. These principles will be further refined and over the next few years specific sets of principles of good governance for co-operatives will be developed for the different kinds of co-operatives, i.e. worker co-operatives, housing co-operatives, etc. The principles of good governance for the different kinds of co-operatives will provide a strong foundation for co-operatives to enforce good governance that will inspire confidence and elevate the status of co-operatives as solid and unique business entities that provide a robust long-term approach to building competitive co-operative enterprises and economies.

The principles of good governance for co-operatives provide guidelines to members, boards of directors and managers to ensure compliance with all legal requirements. The aim is to enable all co-operative members, as owners of co-operatives, as well as directors and managers to realize their roles and responsibilities in ensuring compliance with good co-operative governance. Transparency and accountability is at the center of good governance. User friendly checklists have also been included to guide co-operatives to ensure compliance to legislative requirements.