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I'm all for staff being able to raise issues of inappropriate behaviour or language, but I am not sure why having a specific phrase to do so would make it 'less confrontational' - in fact I can see lots of situations where it could have the opposite effect, since it immediately labels the language used as inappropriate.

I think if the firm is concerned that it has a problem with inappropriate language to the degree that it needs to have a policy about it, they should be looking at the underlying issue of why that is.