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I'd assume its a hard line and mainly stuff that would get any other company in a lot of real hot water had they done the same or been involved with it.
Very questionable and potentially tasteless stuff probably won't get the cut treatment unless it was really that bad or indefensible. Something like the Katie Vick angle leaned a lot more towards the dumb and comical side than the offensive side although the real story of the shooting of that scene is very messed up.
Something like any WWE Network footage involving Col. DeBeers from AWA probably is getting the hard scrub treatment since that character was based on being an open racist and saying racist stuff to his opponents and others.
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