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Seems sensible enough to fire the guy if he is using racial slurs.
edit:
Actually, this seems weird. I think the details matter here. He used the word in a discussion about what words were sensitive, which is a reasonable context and people were offended, according to the article, because he used the full word. " Friedland used the N-word during a meeting with Netflix public relations staff during a discussion about "sensitive words." Several people told him they were offended by his use of the full word, according to Hastings's memo."
So can we infer from that that he did not use the term itself in a disparaging way but simply failed to call it "the N-word?" If so, that's infantile.
It is hard to argue that there is anything about the word itself that is bothersome to almost any American, but offense is instead entirely contextual. If he used it in context where it was clear he was not disparaging anyone, there shouldn't be a problem.
"Hastings added that, in his view, there is "not a way to neutralize the emotion and history behind the word in any context." I think this is laughable. I've easily heard the word used thousands of time with no offense meant and none taken. It is untrue that there is no way to neutralize the emotion and history behind the word.
When keeping it PC goes wrong.