What would you do when your black employees object to what he would say to them? The words "hostile work environment" come to mind.

I worked with an administrative assistant with Tourette's syndrome who would routinely blurt out observations about the sexual/physical characteristics of female co-workers, provoking "managers" passing by to take the opportunity to assert their inclination to be the strong gentleman and challenge this poor fellow to a fight for m'lady's honor.

It only took a moment of explanation and de-escalation to clue them in to what was going on, and the situation was defused, no matter how many more "nice tits" the administrator busted out in public.