That your answer to the question "should he be censured?" but what's your answer to "what censude is appropriate?"

Where I live, censure can range from a stern telling-off by one's manager or HR up to being fired, or being fired with no notice, or in some rare cases it's even possible to be fired and lose accrued pension benefits. I don't know what's legally possible in that jurisdiction, but perhaps you could assume that it's similar and describe where on that scale you think his censure ought to be, and why?

> Why should he not apologise unreservedly?

Because he has nothing to apologize for.

Probably as if he’s in a department store. Could have also said “sporting goods”, it just wouldn’t have been AS (marginally) funny. It’s a dad joke, at best, but I don’t think it’s offensive in any way. People need to grow up and get over themselves, instead of trying to police each and every little thing someone says.