I can see I'm the odd man out here, but that makes me wonder: would it bother you if you found out someone at work was saying YOU were a racist? Why is it "leave it alone" because it's someone else? She said she considers this other person a friend. If someone is accusing your friend of being racist, don't you think you should let your friend know? Especially if he/she has given you no indication that they are, in fact, a racist? Is it different because these are coworkers? I don't understand why people would think she shouldn't say anything to her friend, who is in a position of authority, that someone at work is saying things about him that can/will negatively affect his reputation?