You should punish students who call people names in class.
Ted is a teacher in high school and has a problem student who bullies others.
Ted wants the bully to stop abusing other students.
Ted punishes the bully who stops his abusive behavior.
Ted thinks that by being friendly with the bully instead of punishing him, the bully will feel better about himself and stop being a jerk.
The abused students feel supported and protected by their teacher.
The bullying stops but the victims feel that the bully somehow got rewarded for his abusive behavior.