Where I’d say the term “tolerance” matters is that some people will take negative actions against others in their lifetime - the question is how much leeway you give them on it.

Say a guy you’ve never met steps into a shop you own, and immediately tells you to “Back the hell off, dipshit.” Ostensibly, he’s broken the rule of respect, and should receive none - but tolerance would suggest that if, a minute later, he says to you “…Look, I’m sorry for yelling. Everyone I’ve met today has treated me terribly and I lashed out.” then the social contract is preserved.

Tolerance acknowledges people are not perfect, and will make mistakes. The paradox of tolerance helps us recognize when they’re not mistakes.