I would argue that it does. This is on Gaf now, Che's probably talking about it with Shoe in the lunch room at Ziff. If Shoe or JD (or whoever is in charge of these situations) do not address it publically, and discipline the individual responsible, then it is as good as approving of it. The publication is a team effort, after all, and mistakes do represent the whole.
Then again, it is a videogame website/publication, so in the end, it is insignificant. I appreciate that shoe has his morals (and I agree with them), but if I were in his position, I would take some form of action. Better to resolve an obvious issue than let it remain out in the open like this.