MikeH

Answer: He didn't bite it off, but almost. The people in the room are all just power and money hungry, they decide to ignore it in hopes to keep their job.

lionhead

Answer: The same reason real-world employees might not say anything if their boss is abusive or inappropriate - they want to stay quiet and keep their jobs. Best not rock the boat, so to speak. Also, both Penguin and Max Shreck are very influential people - not exactly the sort of people you'd want to mess with or contest. Hence, everyone sort-of just ignores what happened and continues on with their day.

TedStixon