Humans are not rational animals, they are rationalizing animals.

So in this regard, they probably do deep down see it as evil, but will try to reason a way (often in a hypocritical way) to make it appear good. The msot common method of using this to drive bigotry often comes in the reasons of 1) dehumanizing the subject of hate ("Group X is evil, so they had it coming!") or 2) reinforcing a superiority over the subject of hate ("I worked hard and deserve this. Group X did not but wants the same thing").

Your answer depends on how effective you think propaganda and authority is at shaping the mind to contradict itself. The Stanfor experiment seems to reinforce a notion that a "good" person can justify any evil to themself with a surprisingly little amount of nudging.