Category of Social Responsibility: Discretionary Responsibility

Discretionary responsibility is the highest level of social responsibility that a company can undertake. It goes beyond legal and ethical obligations and involves voluntary actions taken by a company to benefit society and the environment. This responsibility is not mandated by any law or regulation, but rather reflects the company's desire to make a positive impact on society.

Explanation:

Companies have different levels of social responsibility, which can be categorized into four main categories: economic, legal, ethical, and discretionary responsibility. Each category represents a different level of obligation and commitment to society.

Economic Responsibility:
- Economic responsibility refers to a company's primary obligation to generate profits and provide a return on investment to its shareholders.
- It focuses on the company's ability to create jobs, contribute to economic growth, and generate wealth for stakeholders.

Legal Responsibility:
- Legal responsibility refers to a company's obligation to comply with all applicable laws and regulations in its operations.
- Companies are required to follow laws related to employment, health and safety, environmental protection, consumer protection, and more.

Ethical Responsibility:
- Ethical responsibility goes beyond legal requirements and involves conducting business in a morally and ethically responsible manner.
- It includes actions such as treating employees and stakeholders fairly, avoiding conflicts of interest, being honest and transparent, and respecting human rights.

Discretionary Responsibility:
- Discretionary responsibility is the highest level of social responsibility.
- It refers to voluntary actions taken by a company to benefit society and the environment, without any legal or ethical obligation.
- These actions are not required by law, but they reflect the company's commitment to making a positive impact on society.
- Examples of discretionary responsibility include philanthropy, community involvement, environmental sustainability initiatives, and corporate social responsibility programs.

In the given statement, "It is purely voluntary obligation," indicates that the responsibility being referred to is not mandated by law or ethical standards, but rather a discretionary action taken by the company. Therefore, the correct category of social responsibility referred here is Discretionary Responsibility.