I went and checked the website I help run and we only have 5 words that are censored. and if someone types them you will get the poop emoji or a censored smiley.
5 words on a family oriented forum and no one, I mean no one uses any derogatory terms. we did have 1 person who was a bit crazy and was always being reported for her ridiculous absolutely unnecessary P-O-T-T-Y mouth and we had to ban her after 3 strikes... we have a discipline policy that we can use at our discretion. like someone who was recently banned from this site.... she was screaming about some BS that was completely unrelated to our site and wouldnt stop.
that kind of behavior is unnecessary, unacceptable and does not help improve the site in anyway whatsoever. BUT there should already be a policy in place for those users and they only need to be reported.