Strengthening and Developing Merah Putih Cooperative Based on Good Corporate Governance and Business Innovation

Abstract

Cooperatives remain a cornerstone of the national economy, yet their strategic contribution to local development is often constrained by weak governance structures and limited innovation capacity. This study highlights the importance of integrating Good Corporate Governance (GCG) principles with business innovation as a dual strategy for strengthening and developing cooperatives. From an accounting and governance perspective, GCG provides the framework for transparency, accountability, responsibility, independence, and fairness in financial and managerial practices. Simultaneously, innovation—through business diversification, digitalization, and sustainability initiatives—expands cooperatives’ capacity to generate revenue and adapt to market changes. The combined application of GCG and business innovation enables cooperatives to transform into modern, professionally managed entities that not only ensure member welfare but also reinforce national economic resilience.