An FA investigation into the pair has been ongoing since last August after the emergence of a dossier detailing correspondence between the duo that contained racist, homophobic and sexist language.
A statement from anti-racism and discrimination body Kick It Out, read: “Kick It Out is of the view that The Football Association has damaged its own credibility and anti-discrimination policies by taking the decision not to charge former Cardiff City and Wigan Athletic manager Malky Mackay and Iain Moody, a former employee of Cardiff and Crystal Palace, for alleged racist, antisemitic, sexist and homophobic comments revealed by the Daily Mail in August 2014.
“The FA has continued to maintain a distinction between public and private communications. These messages were exchanged via work phones and emails, and when they did eventually emerge into the public domain, it became clear to many people that such held and expressed views had brought the game into disrepute unless dealt with effectively and expeditiously.
“Once the messages were disclosed, there was a clear public interest in action being taken. Mackay and Moody admitted their involvement and this is clearly an abrogation of responsibility on the part of The FA.
“The review currently being undertaken by The FA of its unwritten policy on dealing with ‘private communication’ is lamentably late in the day.
“It is Kick It Out’s view that The FA needed to take a strong position to help prove football’s ‘zero-tolerance’ approach towards discriminatory practices.
“Instead, we have another example of the status quo being reinforced, and discriminatory practices being allowed to flourish in ‘no-go’ areas such as within the exclusivity of boardrooms, training grounds and dressing rooms, and via private communication networks.
“How can anybody truly challenge discrimination and prejudiced attitudes in football with confidence now? The apparent reluctance to punish comments and behaviour considered as ‘banter’ or ‘light-hearted culture’ within these settings is entirely damaging.
“It is an insult to those affected by discrimination and offers the prospect of further victimisation if they are to take a stand and confront it.
“Too many people capable of discriminating operate in private, and they are acutely aware of what will land them in trouble if they act this way in the presence of others. The outcome of The FA’s investigation in this case, after such an exhaustive process lasting nearly a whole year, will empower these individuals.
“The case symbolised a serious challenge to the leadership of football and sadly The FA has missed a key opportunity to send out a message to individuals who use private communications to express such unacceptable views.”