I think the answer to your question is yes. I think you can still cite that article. It does not mean you are a bad person. There is probably some good information in the article regardless (and that is why you want to cite it, so that is fair).
I am a bit surprised a journal published that other article in the first place! (And did not ask for the bad word to be changed.)
If you find a typo or anything that can seem dubious, the convention is to follow the word /phrase with [sic].
I am not sure what you mean by 'bad' word? Is it s swear word or a taboo word or just a word that is badly spelt? Either way, there might be a reason for it appearing - indeed, criticising the author(s) for ill-chosen words might be a point of criticism (which could be raise in, say, a footnote).