In conformation there is no penalty for soiling the ring. You need to remember that conformation showing comes from a livestock background. The animals are being assessed in terms of their worthiness as future breeding stock. It is SUPPOSED to have nothing to do with performance, although, of course it does in reality. You can also use food to "bait" a dog in the conformation ring. Some handlers even toss it in the air and onto the ground to get the dog to prick their ears, though other handlers really HATE it when they do this. (the same with handlers who use squeaky toys... it's allowed, but everyone else HATES it!)
Because handlers do NOT want their dog to "waddle and squat" during the short time they have to show off a beautiful gait, they do everything they can to make sure the dog is "empty" before going into the ring. Most people who show their own dogs know their dogs well enough, and have enough time to spend with their dogs to make SURE they have pooped before ring time. Handlers, who have a lot of dogs to get ready, and can't watch all of them, have a well-known trick to "hurry things along" They put an unburnt match stick in the dog's anus a half hour or so before ring time.. the material in the match head is just irritating enough to make the dog have a bowel movement. Problem solved.
Unfortunately, boys like this one in the video, who want to "lift leg" when they smell a girl... are going to do so. And since it is perfectly within the rules to show girls in heat, boys need to get used to having that smell around. Some of them are going to "handle it" better than others!
In any PERFORMANCE sport it is an automatic "NQ" or "non qualifying score" to foul the ring. That means that even if the dog put in a perfect performance and soils the ring on the way out the gate it gets an "NQ". This INCLUDES if you give your dog a cookie just before going in, and the dog coughs it up in the ring in moment after entering the ring. (NQ and DQ are two completely different things BTW)