I think the interviewee is a few nuts short of being a fruit cake! That is outrageous!
I would not report him... immediately... I would try to resolve the issue man to man. Talk it over and explain why not using the SOP's makes ME uncomfortable. I would try to resolve the issue before it gets out of hand. At the end of that line I would probably avoid getting myself paired with that individual.
In response to the second question... If I was called out for reporting someone I would man up and take responsibility for my actions and not try to sideskirt the question.
I think this is a classic example of what not to do in an interview.... but then again I too may be a nut short of being a fruitcake!