Killing species with evil souls is not 'racist'
Hmm, in the scenario Niara outlined your character would still be killing someone who has done them no harm and shows no sign of being a threat because of some general attitude to goblins as a whole, which seems racist to me. Or speciesist, as it may be.
Possibly there are arguments that racism/speciesism against goblins is justified because of some theological point about Maglubiyet, I don’t know. It’s all a bit abstract for me, though if so you could perhaps make a case for them not being a racist “arsehole”, but instead a wholly righteous racist. But as long as they’re taking a general stance against goblins that’s divorced from anything a particular goblin does, then I don’t see how you can avoid the charge of them being
some sort of racist.