I agree that this is bad. However, I have to say that if I had stated "Yes, I'm embarrassed that we didn't put a stop to this list far earlier." and then some

I agree that this is bad. However, I have to say that if I had stated "Yes, I'm embarrassed that we didn't put a stop to this list far earlier." and then some employee kept objecting, referring to the pyramid of hate and genocide and all that and I knew that said person had participated in the making fun of names themselves, I would be tempted to call that out as well. That does not make it right and it certainly shouldn't have happened publicly but I don't think it reveals quite the character flaw that some seem to think it does.