The Taunting skill is primarily a class skill that Fighters get, it is also an ability that pets can use.
Taunting can be turned on or off once active any monsters will be drawn to attack the person who is taunting. This allows fighters tor tanking pets to take the brunt of the attack and let weaker pets or classes survive a fight.
Skill Use
Players with the taunting skill can turn on aggressive taunting via the File > Options screen under the Character category.
As you will see there are two settings:
Pet Taunting
Pet taunting can be turned on via the Minions > Manage screen, simply choose the pet you wish to have taunt and click the Turn taunting on button you can also turn off taunting by clicking the Turn taunting off button.
If your pet is weak it may die quickly so taunting is not recommended for every pet. It is best used with a pet with high health/armor and defensive capabilities.
As you can only use taunting in combat there is no real reason to turn taunting on for a non-combat pet.