The owner of Charlottetown's T3 Transit is considering posting a passenger code of conduct after receiving a complaint of an alleged racist comment made on one of his buses last week.

CBC News has heard audio recorded by a passenger in which the N-word was used.

The passenger told CBC that two Caucasian men used the word when talking to a dark-skinned man.

Transit owner Mike Cassidy said he is now looking at putting up a code of conduct poster for passengers who travel on his buses. .

"A driver has to be able to point to something, and if you have the rules of conduct, "Please, you see my sign, if you don't sit down, if you don't stop, please leave this person alone. If not, I will be contacting my office and the police will be at the next bus stop,'" said Cassidy.

"It's a very inexpensive way to show that we respect all individuals and we're happy that Prince Edward Island is a diverse community."

Cassidy also is thinking about putting cameras on the transit buses, a move he says he has never had to consider before.