That creates a catch-22 for anyone who commits a faux-pas (like mistaking the black CEO for a subordinate). Either admit to racism and cast oneself in with the cross-burners, or bail out of the situation ASAP.
We have the same kind of problem with the label of "sex offender." It's a category that runs the gamut from "guy who got arrested for public urination while walking home drunk from the bar one night" all the way to Jeffrey Dahmer.
Scott over at Slate Star Codex has a fantastic piece that covers this phenomenon [1]. The core idea has to do with the tension between central and non-central examples of a category:
Remember, people think in terms of categories with central and noncentral members – a sparrow is a central bird, an ostrich a noncentral one. But if you live on the Ostrich World, which is inhabited only by ostriches, emus, and cassowaries, then probably an ostrich seems like a pretty central example of ‘bird’ and the first sparrow you see will be fantastically strange.
I'm glad we're having this conversation in society. I honestly don't know what to do about it though.
[1] https://slatestarcodex.com/2014/05/12/weak-men-are-superweap...