So I have a question for you all. I have this friend.....lets call him Phil.
I'll give you a bit of background on him, he used to be my boss for a couple of years. We got on quite well as friends probably more so than employer and employee. I should mention and one point he did ask me out, to which I declined because I don't feel anything that way for him. This was a couple of years ago now and we have definately got past that bit, problem is I have been getting to know him better as a person.
I'm starting to find him really offensive in some situations. He is the kind of guy that is a man's man! He's into his football, golf and top gear; I also get the feeling that if he ever lost a game of golf against a woman he would find it much harder to get over than if it was a man. Ok, so I have a friend who is a guy and he is a dancer, so he is very thin for a guy and alot of people when they first meet him think he is gay. He's not but the point is when we were out one night, Phil was there too and he brought along his best mate. He's best mate proceded to take the rip out out of my friend and kept taunting him, calling him gay! I kept telling him to shut up because he was being rude, and Phil who is supposed to be my friend found it increasingly funny. That was the first instance of this side of him.....then one night we went for a meal in a pub after I finished work. We got on the subject of gay people because I said I had been to a gay bar when I was out on the town; he started to get uptight. Then he said to me " I'll be honest my ex-girlfriend had to calm me down in the street if we came across gay people because I would want to go up and tell them it's wrong" He even went on to say he gets violently angry around them. This I really could not believe, I was shocked that someone I acquainted myself with could have these feelings. I am a person that has really strong morals when it comes to things like homosexual rights, Racism and cruelty in other forms.

I have started to recognise other sides to him, like when he goes abroad he always tries to come across like he wants to go over there and suck up their culture. Yet when he went to africa, he did nothing but expect them to speak english, and try and haggle so much that he scrounges them out of money. It has made me look at other parts of his life, this may be nothing but I notice that he has no black or half cast friends at all. As I said I may be reading into it too much, but it's pretty hard these days to just have white friends. I hate that there is a possibility that he holds some kind of prejudice towards black people, and I really hate the fact that he is blatantly homophobic.
So my question would be to you guys? How do I be friends with someone that makes me question my own morals everytime I see him? Can I be friends with him? Should I want to be friends with him?

Help! I feel in a crisis, I'm not the kind of person that can just turn around and say get lost you're a disgrace.