Constructing an instance of CO from an instanceDecision problem forms of VC and CO
Let the input VC instance be $(V, E, k)$. It represents the question: "Given the graph $(V, E)$, is it possible to choose a set of at most $k$ vertices from $V$ such that every edge in $E$ is incident on at least one chosen vertex?" We will construct an instance $(A, k')$ of CO that represents the question: "Given the matrix $A$ with elements in $\{-1, 0, 1\}$, is it possible to permute the columns of $A$ such that a 1 appears before a -1 on at least $k'$ rows?" These two problems are stated in decision problem form, whereby the answer to each is either YES or NO: formally speaking, it is this form of a problem that is NP-complete (or not). Let It is not too difficult to see that the more natural optimisation problem form stated in the OP's question is roughly equivalent in terms of complexity: binary search on the threshold parameter can be used to solve the optimisation problem using a decision problem solver, while a single invocation of an optimisation problem solver, followed by a single comparison, is enough to solve the decision problem.
Constructing an instance of CO from an instance of VC
Let $n=|V|$ and $m=|E|$. We will build a matrix $A$ with $(n+1)m + n$ rows and $n+1$ columns. The top $(n+1)m$ rows will be formed of $m$ blocks of $n+1$ rows each, with each block representing an edge that needs to be covered. The bottom $n$ rows contain vertex "flags", which will cause a column (corresponding to a vertex) to incur a fixed cost if it is included in the left-hand side of the CO solution (corresponding to a vertex being included in the vertex cover of the VC solution).
Create one more "fence" column that consists of $(n+1)m$ copies of -1, followed by $n$ copies of +1.
Finally, set the threshold $k'$ for the constructed CO instance: $(n+1)m + n - k$. In other words, we allow at most $k$ rows in which a -1 appears before a +1. Let's call this number of violating rows the "cost" of a CO solution.
The correspondence between a solution to the CO instance and a set of vertices in the original VC instance is: Every column to the left of the fence corresponds to a vertex that is in the set, and every column to the right of the fence corresponds to a vertex that is not.
Clearly a VC solution using at most $k$ vertices yields a solution to the constructed CO instance with cost at most $k$: Just order the columns corresponding to vertices in the vertex cover arbitrarily, followed by the fence column, followed by all remaining columns in any order.
It remains to show that a solution to the CO instance with cost at most $k$ yieldscorresponds to a vertex cover with at most $k$ vertices.
ObserveSuppose to the contrary that in any optimalthere exists a solution to CO, every row in the top $(n+1)m$ rows has a +1 before aCO instance with cost at most -1. (Suppose this were not the case, i.e.,$k$ that leaves some row in the top $(n+1)m$ rows haswith a -1 before a +1: Then the same must hold for every. This row in thisbelongs to a block of $n+1$$(n+1)$ rows, since every column behaves the same way across each of these blocks corresponding to a particular edge $uv$. This Every row in this block ofin the original instance $A$ is identical by construction; permuting columns may change these rows corresponds to an uncovered edge, which can only occur if bothbut does not affect the columnsfact that correspond to the endpoints of this edge appear to the right of the fencethey are identical. Moving either Thus each of these columns from the right side of the fence to the left side would repair every row in this block, saving $n+1$ -1s while costing onlyidentical rows has a single -1, and thus improving before a +1 in the total score bysolution, implying a cost of at least $n$$n+1$. Thus the original solution could not have been optimal But $k \le n < n+1$: contradiction.)