Their behavior (in having a racist and sexist policy) serves to subtly redefine their community guidelines. This type of hypocrisy leads to redefining of rules the same way the Seven Commandments in Animal Farm evolved.
This post[0] from the Advocate has a great line that is relevant here. The current dialogue around diversity "...propagates something harmful: the idea that gender is simply the lack of maleness, race a lack of whiteness, sexuality a lack of gayness."
When someone establishes rules and does not adhere to those rules, they end up redefining the words in those rules until they no longer carry the literal meaning they once did.
The policy reads:
Our last social rule bans subtle racism, sexism, homophobia,
transphobia, and other kinds of bias.
... but now means:
Our last social rule bans subtle racism (except against white
people), sexism (except against cisgender men), homophobia,
transphobia, and other kinds of bias (except any bias against
white cisgender men).
The experience of that individual from the Advocate demonstrates that terms like diversity, racism, sexism and bias are being warped and redefined by society to allow for exceptions that don't include white, straight, cisgender men (and Asian men in the context of engineering).
Language evolves, and the actions of people can shape how it evolves.
[0] http://www.advocate.com/politics/commentary/2011/01/20/im-wh...