The most effective way to deal with is to usually discuss it with a level of management senior to the person using abusive language and let them communicate the message.
However, if the management layer above that is not responsive, or if they are also participating in similar behaviors then it could lead to a difficult situation. Even more difficult would be if the senior level management does not have the maturity to communicate the feedback in a manner that exposes the complainant. This could result in a backlash.
Complaining to the police can alleviate the situation. But let's face it, we live in a world that does not accept whistle blowers.Our society is such that the one who takes action, then needs to brave the world and their ostracization. This is the sad truth.
On the other hand, one could take the high road (call it the spiritual path) and learn to ignore these words. The words themselves are neither good nor bad, it is how we fell about them that makes them good or bad. Difficult as it may sound, one could definitely learn to NOT feel bad at the use of these words and treat it as the unfortunute lack of articulation and managerial capabilities on the part of the person who has to use these words.
Best regards,
- Anil