Rangers chief executive Charles Green has accused an anti-racism body of a "knee-jerk reaction" over comments published in a Sunday newspaper interview.
Show Racism the Red Card issued a statement criticising Green after he referred to former Rangers director Imran Ahmad as "my P*** friend'', which the group insisted was "racist and offensive''.
But Green said on Tuesday: "It is unfortunate that Show Racism the Red Card has fallen into the trap of taking something out of context and giving a knee-jerk reaction.
"In the interview, I referred to the fact we are now living in a politically correct world where words and phrases that were once used are no longer acceptable.
"My use of the word 'P***' was when I was referring to how I sometimes warmly address my colleague and friend Imran Ahmad when we meet, something we both know is light-hearted.
"I deplore racism and sectarianism and this football club does a huge amount of work in this area to help eradicate these problems.''
Ged Grebby, chief executive of Show Racism the Red Card, had said of the language Green used: "The comments of Charles Green are very ill-advised and someone in his public position should really know better than to use this kind of racist and offensive language.
"The use of the term 'P***' is highly offensive and it is something that we at Show Racism the Red Card are trying to educate young people against.
"For the CEO of Rangers to use the term in any context is not helpful as it sends out the wrong message to young people.''
Information from the Press Association was used in this report