Logic: They are involved in questionable legalities but not punishable ones (not going to jail). It may be analogous to good but not great. I understand the explanation for DISCRETION.
Can you tell me if the above logic makes sense and I need to come up with different words for the blanks or the logic itself is incorrect.
For this sentence, I will simplify the sentence and retain the logic:
Despite the legality of their endeavors being questionable, members are not exercising _ in carrying them out.
There is a contrast since we see the word “despite”. Even though they are doing something that is borderline illegal (i.e. possibly illegal based on interpretation), they are not being careful.
The idea “they are doing borderline illegal endeavors” and “they are not being careful” are contrasted. This sentence is pointing out how odd that is since you would expect someone to exercise caution in such a gray-area situation.
A word similar to punishable offense does not fit. The idea is “they are not exactly exercising __ in carrying them out”, so you want a word that describes how they are carrying out the endeavors.