The 59-year-old has been condemned by Show Racism the Red Card for some "highly offensive" remarks, whilst he has accused the organisation of a "knee-jerk reaction"
The anti-racism organisation were responding to comments made by Green in an article published by the Scottish Sun on Sunday, but the 59-year-old has accused the organisation of a "knee-jerk reaction", whilst also insisting that he "deplores racism and secretarianism".
"The comments of Charles Green are very ill-advised and someone in his public position should really know better than to use this kind of racist and offensive language," said Show Racism the Red Card chief executive Ged Grebby.
"The use of the term 'Paki' is highly offensive and it something that we at Show Racism the Red Card are trying to educate young people against.
"For the CEO of Rangers to use the term in any context is not helpful as it sends out the wrong message to young people.
"Show Racism the Red Card has a long standing working relationship with Rangers FC. The club is an excellent supporter of our anti-racism and anti-secretarianism campaigns."
In the article, published on Sunday, Green was quoted as saying: "I was brought up in a mining community where whether someone was black, white, Catholic, Salvation Army, Protestant, made no difference.
"When I played at Worksop Town, the other striker was 'Darkie' Johnson. Now if I say that today I could go to jail.
"You know, Imran [Ahmad, shareholder in Rangers] will come into the office regularly and I'll say 'How's my Paki friend?'"
However, Green has hit back at the criticism, saying his words have been taken out of context and that he works hard to eradicate racism.
"It is unfortunate that Show Racism the Red Card has fallen into the trap of taking something out of context and giving a knee-jerk reaction," he said in a statement.
"In the interview, I referred to the fact that we are now living in a politically correct world where words and phrases that were once used are no longer acceptable.
"My use of the word 'Paki' was when I was referring to how I sometimes warmly address my colleague and friend Imran Ahmad when we meet, something we both know is light-hearted.
"I deplore racism and secretarianism and this football club does a huge amount of work in this area to help eradicate these problems."