Human happiness is a rising issue in the twenty-first century, with mental health gaining relevance alongside physical health and socioeconomic issues. Thus, the goal of this study was to investigate and evaluate the social performance of worldwide Islamic and conventional microfinance organisations in achieving human satisfaction using non-traditional indices. Furthermore, the study investigated the moderating influence of institution size in this connection. The findings suggest that the social performance of both Islamic and conventional microfinance organisations is critical to obtaining human satisfaction. Because of the prospect of commercialization, institutional size has a detrimental impact on the social performance of traditional microfinance organisations in achieving sustainable development. In terms regarding policy suggestions, the findings of this study provide numerous policy directions for Islamic and conventional organisation managers in both developed and developing nations. Both Islamic and traditional MFO managers should prioritise social performance, particularly outreach to underprivileged women, in order to promote human satisfaction. Managers should recognise that expanding the size of the institution can lead to higher social performance. This study also advises the government, central bodies, and other regulatory authorities on how to design laws that will improve the social performance of both Islamic and conventional microfinance organisations in order to achieve happiness. To assess development and progress, central bodies must shift away from obsolete measures used in the MF industry for governance, auditing, and client protection and towards metrics that focus on happiness and well-being. This study used several markers of social performance that are extensively explored in MIX reports. Future research may include financial performance measures.