Firstly, anyone and everyone (like it or not) is innocent until proved guilty, it's the fundamental tenet that our judicial system and all subsequently off-shots are founded on.
Being 'investigated' should not be a bar to being employed; if and when anyone is found guilty, you can then use your judgement to decide that the degree of punishment is so serious that you then prefer not to be associated with that individually, and you might just as easy decide that the punishment is so light that it truly reflects the nature of the 'crime'.
Using nicknames/short name or if you prefer derogatory terms to describe other nationals/culture or races maybe xenophobic, but it's not necessary Racist.
There is a clear distinction to be made and understood and if others cannot or will not see the distinction then that's their prerogative.
Should anyone use these terms in private in a one to one conversation at their choosing should be between those two consenting adults, it only crosses the like when you're using them in public - that's the immediate distinction I can see between Whelan and the new manager he's appointed.
As for when it was acceptable to use these labels, you should watch 'it was alright in the '70's' where you can see and hear the use of stereotypes and labels the likes of which you can't quite understand...
As of today, sensitivities are much higher that they've ever been and with that it mind I'm inclined to say that a simple conversation with Whelan and if you like a bit of sensitivity to his age and upbringing might go a very long way.
All I can say is if you travel around Europe you'll be stunned at how terms like this are used as part and parcel of everyday language from just about every race, colour and creed you can think of - but we've progressed, but that doesn't mean everyone has progressed equally.