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Volumes of history can be written about all the awful decisions made by people in positions of authority because they were deathly afraid of being shunned or frowned upon at "the right kind of cocktail parties."
I could go on and on about decisions in my town, and I'm sure all of us could.  The internet has done immense service to ripping the lid off of a lot of such stuff, and, frankly the political impact is being felt, including last night (even if sometimes entails cutting off noses to spite faces).
Anyway, if this were simply a matter of the higher brass imposing a PC attitude on Z that cramps his baseball style because they're afraid that their ballclub won't "fit in" at the right social circles, then I would be all in with you.
But I think that this deal goes beyond that.  Lueke admitted that he lied to the police until he was nabbed by his DNA.  The incident itself is ugly, and not just to those who want to be PC.  Z admitted that he didn't give any red flags to Armstrong until there was already a media mess.  Z has some obligation to at least know what his bosses' hot buttons are, and not dance over them with impunity.  And worst of all, the org doesn't have a consistent storyline to fall back on because Z's version doesn't fit with what others are saying. 
If  it is true that the Ms are the 1 in 30 that won't let Lueke appear in their uniform even if he toes the line, then, yes, that is another argument.  But we don't know that yet.
I do think that 30 out of 30 would give Z low marks for how the whole thing was handled.

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