If the environment is such that the singer intends no offence and the audience are not offended then why should there be a problem, whatever the word?

Having said that, there are many songs that I don't sing because they would cause offence.
Here's one that nowadays seems incredible. How could anyone write such a song?

There's a mighty heap of trouble brewing down in Tennesee,
and it's all about a little yellow coon.
Now this little pickaninny was as black as he could be
on the morn that he was born the first of June.
Now the cause of this commotion was the fact the other night,
exactly in the fullness of the moon,
this little pickaninny changed his color from black to white,
and in the morn they found a little yellow coon.

Sitting by the fire in his Mammy's arms
as she sings to him this tune
Honey don't you cry, wipe your shiny eye,
There's going to be a little yellow coon.
Never mind your color if your heart ain't black,
better days are coming soon,
Honey don't you cry, wipe your shiny eye,
There's going to be a little yellow coon.