<p>This study investigates the impact of environmental and social performance on financial performance in microfinance institutions (MFIs). Moreover, this study investigates the moderating role of board gender diversity and board orientation on social goals. This study utilized panel data from 139 countries where microfinance institutions (MFIs) operate, spanning 2008 to 2019, and employed panel data fixed effects models and two-stage least squares (2SLS) to ensure the robustness of the results. The results of this study suggest that environmental and social performance negatively affects MFIs' financial performance. Hence, this study supports the trade-off hypothesis. However, board gender diversity positively moderates the relationship between environmental performance and financial performance of MFIs. Similarly, a board's orientation toward social goals positively moderates the relationship between social performance and financial performance of MFIs. Based on resource dependence theory, we argue that board gender diversity brings better resources to the board, and board social orientation toward social goals brings social awareness, which boosts environmentally friendly and socially responsible business strategies and enhances MFI's financial performance. This study provides new evidence that MFIs' environmental, social, and financial goals may not be simultaneously achieved. However, MFIs' environmental, social, and financial performance can be improved by employing balanced board gender diversity and board orientation toward social goals.</p>