Here's where the blackmail comes in. If the employer does not take appropriate disciplinary measures, the company will be exposed for employing a "racist". Facing the prospect of a consumer boycott or a precipitous drop in sales, the employer exacts the most extreme discipline in order to demonstrate its "corporate responsibility" and commitment to "tolerance, diversity, and respect". The employee is summarily fired. His previous contributions, his stellar performance on the job, his popularity among staff — all irrelevant. He is thrown to the wolves to protect the bottom line.