I don't think there was corporate money involved in this case. That leaves me with the hunch it was #2.
The Bishop acted like a partly deflated helium balloon in the wind. When the Big Gay Publicity Machine insisted he fire the teacher, he wobbled off in that direction. When The Lepanto Institute an activist group of faithful Catholics, started running radio ads challenging the Bishop, he wobbled off in the other direction.
I can think of better uses for protoplasm.
Bad publicity from the LGBT crowd probably scared the bishop into submission. He may have been afraid of losing money from private donations for the school.
I hesitate to speculate on the notion of sexual disorder. In my news media days stories of sexual misconduct involving all denominations and strains of Christianity and Judaism crossed the wire service machines.
To single out one denomination like the RC Church for blame isn’t right when I consider the Good Book I read saying in essence “all are sinners”.
I figure the Book tells all people need to keep their own thinking about sex in order so bad actions won’t follow the thoughts. Don’t get all caught up in other people’s sexual conduct.